Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Entity Addresses [Line Items] | ||
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Document Period End Date | Dec. 31, 2022 | |
Entity File Number | 001-41373 | |
Entity Registrant Name | AUSTIN GOLD CORP. | |
Entity Incorporation, State or Country Code | A1 | |
Entity Address, Address Line One | 1021 West Hastings Street, 9th Floor | |
Entity Address, City or Town | Vancouver | |
Entity Address State Or Province | BC | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | V6E 0C3 | |
Title of 12(b) Security | Common Shares, no par value | |
Trading Symbol | AUST | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 13,271,750 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Document Accounting Standard | International Financial Reporting Standards | |
Entity Shell Company | false | |
Entity Central Index Key | 0001817740 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Auditor Name | MANNING ELLIOTT LLP | Manning Elliott LLP |
Auditor Location | Vancouver, Canada | Vancouver, Canada |
Auditor Firm ID | 1524 | |
Business Contact [Member] | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | 1021 West Hastings Street, 9th Floor | |
Entity Address, City or Town | Vancouver | |
Entity Address State Or Province | BC | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | V6E 0C3 | |
Contact Personnel Name | Dennis Higgs | |
City Area Code | +1 (604) | |
Local Phone Number | 644-6579 | |
Contact Personnel Email Address | dennis.higgs@austin.gold |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CAD ($) | Dec. 31, 2020 USD ($) | Apr. 20, 2020 CAD ($) |
Current assets | ||||||
Cash and cash equivalents | $ 630,623 | $ 1,387,670 | $ 1,094,550 | $ 2,421,796 | $ 1,902,133 | |
Short-term investments | 11,649,079 | |||||
Receivables and other | 211,285 | 12,737 | 2,952 | |||
Total current assets | 12,490,987 | 1,403,819 | 1,107,287 | 2,425,553 | 1,905,085 | |
Non-current assets | ||||||
Marketable securities | 16,473 | 249,562 | 196,847 | 426,109 | 334,676 | |
Exploration and evaluation ("E&E") assets | 2,369,034 | 1,632,043 | 1,286,156 | 875,371 | 686,737 | |
Property and equipment | 1,181 | 2,285 | 1,803 | 3,265 | 2,564 | |
Total assets | 14,877,675 | 3,287,709 | 2,592,093 | 3,730,298 | 2,929,062 | |
Current liabilities | ||||||
Accounts payable and accrued liabilities | 97,825 | 77,048 | 60,773 | 37,942 | 29,800 | |
Total liabilities | 97,825 | 77,048 | 60,773 | 37,942 | 29,800 | |
SHAREHOLDERS' EQUITY | ||||||
Share capital | 16,329,958 | 3,689,258 | 2,714,755 | 3,674,258 | 2,703,053 | |
Other reserves | 2,044,692 | 2,100,550 | 1,624,053 | 2,100,550 | 1,624,053 | |
Accumulated other comprehensive income (loss) ("AOCI") | (574,949) | (6,119) | 143,972 | (12,203) | 122,511 | |
Deficit | (3,019,851) | (2,573,028) | (1,951,460) | (2,070,249) | (1,550,355) | |
Total equity | 14,779,850 | 3,210,661 | 2,531,320 | 3,692,356 | 2,899,262 | |
Total liabilities and shareholders' equity | $ 14,877,675 | $ 3,287,709 | $ 2,592,093 | $ 3,730,298 | $ 2,929,062 |
CONSOLIDATED STATEMENTS OF LOSS
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS | 12 Months Ended | |
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Administrative expenses | ||
Management and consulting fees | $ 634,169 | $ 18,350 |
Professional fees | 295,193 | 236,149 |
Insurance | 262,315 | 7,397 |
Listing and filing fees | 164,837 | 9,061 |
Share-based compensation | 162,628 | |
Marketing | 139,655 | 2,607 |
Investor relations | 34,294 | 2,073 |
General and administrative | 12,299 | 12,851 |
Travel expenses | 11,377 | |
Depreciation | 527 | 780 |
Operating loss | (1,717,294) | (289,268) |
Unrealized fair value loss on marketable securities | (174,634) | (108,653) |
Realized gain on marketable securities | 6,443 | |
Interest and finance income | 183,213 | |
Foreign exchange gain (loss) | 640,324 | (9,627) |
Net loss for the year | (1,068,391) | (401,105) |
Items that may be subsequently reclassified to earnings or loss: | ||
Currency translation adjustments | (718,921) | 21,461 |
Comprehensive loss for the year | $ (1,787,312) | $ (379,644) |
Loss per share - basic and diluted | ||
Basic | (per share) | $ (0.09) | $ (0.04) |
Diluted | (per share) | $ (0.09) | $ (0.04) |
Weighted average number of shares | ||
Basic | shares | 11,985,877 | 9,516,560 |
Diluted | shares | 11,985,877 | 9,516,560 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Cash flows used in operating activities | ||
Net loss for the year | $ (1,068,391) | $ (401,105) |
Items not affecting cash: | ||
Depreciation | 527 | 780 |
Interest and finance income | (183,213) | |
Share-based compensation | 162,628 | |
Realized gain on marketable securities | (6,443) | |
Unrealized foreign exchange gain | (678,210) | |
Unrealized fair value loss on marketable securities | 174,634 | 108,653 |
Changes in non-cash working capital items: | ||
Receivables and other | (207,210) | (9,867) |
Accounts payable and accrued liabilities | 7,423 | 31,283 |
Net cash used in operating activities | (1,791,812) | (276,699) |
Cash flows used in investing activities | ||
Expenditures on E&E assets | (1,066,431) | (586,923) |
Interest received | 49,156 | |
Proceeds from sale of marketable securities | 38,632 | |
Purchase of short-term investments | (14,000,000) | |
Redemption of short-term investments | 2,500,000 | |
Net cash used in investing activities | (12,517,275) | (548,291) |
Cash flows generated by financing activities | ||
Proceeds from initial public offering ("IPO") | 15,019,000 | |
Share issuance costs | (1,165,580) | |
Net cash generated by financing activities | 13,853,420 | |
Decrease in cash and cash equivalents for the year | (455,667) | (824,990) |
Cash and cash equivalents, beginning of year | 1,094,550 | 1,902,133 |
Effect of foreign exchange rate changes on cash and cash equivalents | (8,260) | 17,407 |
Cash and cash equivalents, end of year | $ 630,623 | $ 1,094,550 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | Share capital Property option payments shares | Share capital IPO USD ($) shares | Share capital CAD ($) shares | Share capital USD ($) shares | Other reserves CAD ($) | Other reserves. USD ($) | AOCI CAD ($) | AOCI USD ($) | Deficit CAD ($) | Deficit USD ($) | CAD ($) shares | USD ($) shares |
Balance beginning at Apr. 20, 2020 | ||||||||||||
Balance beginning (in shares) at Apr. 20, 2020 | shares | ||||||||||||
Share issuance costs | $ (9,838) | (9,838) | ||||||||||
Value assigned to share options and warrants vested | 2,100,550 | 2,100,550 | ||||||||||
Currency translation adjustments | (12,203) | |||||||||||
Loss for the year | (2,070,249) | |||||||||||
Balance ending at Dec. 31, 2020 | $ 3,674,258 | $ 2,703,053 | 2,100,550 | $ 1,624,053 | (12,203) | $ 122,511 | (2,070,249) | $ (1,550,355) | $ 3,692,356 | $ 2,899,262 | ||
Balance ending (in shares) at Dec. 31, 2020 | shares | 9,512,000 | 9,512,000 | 9,512,000 | 9,512,000 | ||||||||
Shares issued | $ 11,702 | $ 11,702 | ||||||||||
Shares issued (in shares) | shares | 5,000 | |||||||||||
Currency translation adjustments | 21,461 | $ 6,084 | 21,461 | |||||||||
Loss for the year | (401,105) | (502,779) | (401,105) | |||||||||
Balance ending at Dec. 31, 2021 | $ 3,689,258 | $ 2,714,755 | $ 2,100,550 | 1,624,053 | $ (6,119) | 143,972 | $ (2,573,028) | (1,951,460) | $ 3,210,661 | $ 2,531,320 | ||
Balance ending (in shares) at Dec. 31, 2021 | shares | 9,517,000 | 9,517,000 | 9,517,000 | 9,517,000 | ||||||||
Shares issued | $ 15,019,000 | |||||||||||
Shares issued (in shares) | shares | 3,754,750 | |||||||||||
Share issuance costs | $ (1,403,797) | 238,217 | $ (1,165,580) | |||||||||
Value assigned to share options and warrants vested | 182,422 | 182,422 | ||||||||||
Currency translation adjustments | (718,921) | (718,921) | ||||||||||
Loss for the year | (1,068,391) | (1,068,391) | ||||||||||
Balance ending at Dec. 31, 2022 | $ 16,329,958 | $ 2,044,692 | $ (574,949) | $ (3,019,851) | $ 14,779,850 | |||||||
Balance ending (in shares) at Dec. 31, 2022 | shares | 13,271,750 | 13,271,750 |
NATURE OF OPERATIONS AND GOING
NATURE OF OPERATIONS AND GOING CONCERN | 12 Months Ended |
Dec. 31, 2022 | |
NATURE OF OPERATIONS AND GOING CONCERN | |
NATURE OF OPERATIONS AND GOING CONCERN | 1. NATURE OF OPERATIONS AND GOING CONCERN (a) Nature of operations Austin Gold Corp. (the “Company”) was incorporated on April 21, 2020, in British Columbia (“BC”), Canada. The Company is a reporting issuer in BC and its common shares are traded on the NYSE American stock exchange under the symbol “AUST”. The Company’s registered office is the 9th Floor, 1021 West Hastings Street, Vancouver, BC, Canada, V6E 0C3. The Company is focused on the acquisition, exploration and development of mineral resource properties primarily in the western United States of America (“USA”). The Company has not yet determined whether its mineral resource properties contain mineral reserves that are economically recoverable. The continued operation of the Company is dependent upon the preservation of its interest in its properties, the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of such properties and upon future profitable production or proceeds from the disposition of such properties. (b) Going concern assumption These consolidated financial statements are prepared on a going concern basis, which contemplates that the Company will be able to meet its commitments, continue operations and realize its assets and discharge its liabilities in the normal course of business for at least twelve months from December 31, 2022. The Company has incurred ongoing losses and expects to incur further losses in the advancement of its business activities. For the year ended December 31, 2022, the Company incurred a net loss of $1,068,391 and used cash in operating activities of $1,791,812 . As at December 31, 2022, the Company had cash and cash equivalents of $630,623 , a working capital (current assets less current liabilities) surplus of $12,393,162 and an accumulated deficit of $3,019,851 . The operations of the Company have primarily been funded by the issuance of common shares. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. Management estimates its current working capital will be sufficient to fund its current level of activities for at least the next twelve months. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
BASIS OF PREPARATION | ||
BASIS OF PREPARATION | 2. BASIS OF PREPARATION Statement of compliance and basis of presentation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements have been prepared on a historical cost basis except for financial instruments classified as fair value through profit or loss (“FVTPL”), which are stated at their fair value. These consolidated financial statements were authorized for issue by the Board of Directors on March 15, 2023. | a. Basis of presentation Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Board of Directors of the Company approved these consolidated financial statements and authorized them for issue on March 15, 2022. Basis of Measurement These consolidated financial statements of the Company have been prepared on an accrual basis, and are based on historical costs, except for financial instruments measured at fair value. Functional and Presentation Currency These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. The subsidiary’s functional currency is United States dollars. All financial information is expressed in Canadian dollars unless otherwise stated and has been rounded to the nearest dollar. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of consolidation These consolidated financial statements include the financial statements of the Company and the entity controlled by the Company, its subsidiary, listed in the following table: Place of Proportion of Name of subsidiary incorporation ownership interest Principal activity Austin American Corporation (“Austin NV”) Nevada, USA 100 % Holds interests in exploration projects 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give the Company the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50 % of the voting rights or currently exercisable potential voting rights of a subsidiary’s share capital. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. (b) Foreign currency translation Functional currency Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). For the parent entity, with the completion of the IPO on the NYSE American stock exchange, future equity financings are expected to generate proceeds denominated in United States dollars (“USD”). In addition, E&E expenditures and administrative costs incurred to conduct business activities are primarily denominated in USD. As a result of these changes in underlying transactions, events and circumstances, the functional currency of the parent entity was reassessed. The functional currency of the parent entity changed from the Canadian dollar (“CAD” or “C$”) to the USD commencing on December 31, 2022. The change in functional currency was accounted for on a prospective basis, with no impact of this change on prior year comparative information. The functional currency of the Company’s subsidiary remains the USD. Presentation currency On December 31, 2022, the Company elected to change its presentation currency from CAD to USD. The change in presentation currency is to better reflect the Company’s business activities and to improve investors’ ability to compare the Company’s financial results with other USA listed businesses in the mining industry. The Company applied the change to USD presentation currency retrospectively and restated the comparative financial information as if the new presentation currency had always been the Company’s presentation currency. From December 31, 2022, the USD presentation currency is consistent with the functional currency of the Company. For periods prior to December 31, 2022, the statements of financial position for each period presented have been translated from the CAD functional currency to the USD presentation currency at the rate of exchange prevailing at the respective financial position date with the exception of equity items which have been translated at accumulated historical rates from the Company’s date of incorporation in 2020. The statements of loss and comprehensive loss were translated at the average exchange rates for the reporting period, or at the exchange rate prevailing at the date of transactions. Exchange differences arising on translation from the CAD functional currency to the USD presentation currency prior to the change in functional currency to USD, have been recognized in other comprehensive income (loss) and accumulated as a separate component of equity. Transactions and balances Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses result from the settlement of foreign currency transactions and from the translation of monetary assets and liabilities denominated in currencies other than an entity’s functional currency. These gains (losses) are recognized in the statement of loss and comprehensive loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the date of the initial transactions. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (c) Financial instruments Financial instruments – Classification Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or fair value through other comprehensive income (“FVOCI”). The classification depends on the Company’s business model for managing the financial assets and the contractual terms which give rise to the cash flows. For assets measured at fair value, gains (losses) will either be recorded in earnings (loss) or other comprehensive income (“OCI”). For investments in debt instruments, this will depend on the business model for which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI. The Company reclassifies debt investments when, and only when, its business model for managing those assets changes. Financial instruments – Measurement At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in the statement of loss and comprehensive loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments: ● Amortized cost – Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method. ● FVOCI – Assets that are held for collection of contractual cash flows and for selling the financial assets, where those cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance expense using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange gain (loss) and impairment expenses in other expenses. ● FVTPL – Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of loss and comprehensive loss within other gains (losses) in the period in which it arises. Changes in the fair value of financial assets at FVTPL are recognized in gain (loss) on change in fair value of financial instruments in the statement of loss and comprehensive loss as applicable. Financial instruments - Impairment An expected credit loss (“ECL”) impairment model applies which requires a loss allowance to be recognized based on ECLs. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in earnings (loss) for the period. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through earnings (loss) to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Financial instruments - Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of loss and comprehensive loss. Cash and cash equivalents Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Cash and cash equivalents are classified at amortized cost. Interest and finance income is recognized by applying the effective interest rate method. Short-term investments Short-term investments comprise term deposits and redeemable short-term investment certificates (“RSTICs”) held at major financial institutions with an original maturity date between three and twelve months. Short-term investments are classified at amortized cost. Interest and finance income is recognized by applying the effective interest rate method. Marketable securities Marketable securities comprise of common shares of publicly traded companies. Marketable securities are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Changes in fair value at each reporting date are included in the statement of loss and comprehensive loss as gain (loss) on marketable securities. Accounts payable and accrued liabilities Accounts payable and accrued liabilities are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method. Derivative liabilities Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date. Changes in fair value at each reporting date are included in the statement of loss and comprehensive loss as gain (loss) on change in fair value of derivative liability. (d) Property and equipment Property and equipment is measured at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated future cost of dismantling and removing the asset at the end of its useful life. The purchase price or construction cost is the fair value of consideration to acquire the asset. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Depreciation of property and equipment commences when the asset has been fully commissioned and is available for its intended use. Depreciation is calculated using declining balance rates ranging from 15% to 30% per annum or the straight-line method to allocate cost over the estimated useful lives. Depreciation on assets that are directly related to E&E assets are allocated to that E&E asset. Depreciation methods and estimated useful lives and residual values are reviewed annually and when facts and circumstances indicate that a review should be performed. Changes in estimates are accounted for prospectively. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain (loss) arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the statement of loss and comprehensive loss. (e) Mineral properties Mineral properties are measured at cost less accumulated depletion and accumulated impairment losses. Mineral properties include the fair value attributable to mineral reserves and mineral resources acquired in a business combination or asset acquisition, mine development costs and previously capitalized E&E expenditures. Upon commencement of production, a mineral property is depleted using the unit-of-production method. Unit-of-production depletion rates are determined using mineral units mined over the estimated proven and probable mineral reserves of the mine. (f) E&E assets All E&E expenditures are capitalized, including the costs of acquiring exploration stage properties, except for E&E expenditures incurred before the Company has obtained legal rights to explore an area, which are expensed. Exploration expenditures are costs incurred in the initial search for mineral deposits with economic potential or in the process of obtaining more information about existing mineral deposits. Exploration expenditures typically include costs associated with prospecting, sampling, mapping, drilling and other work involved in searching for Mineral Resources, as defined by Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Evaluation expenditures are the costs incurred to establish the technical feasibility and commercial viability of developing mineral deposits identified through exploration activities, business combinations or asset acquisitions. Evaluation expenditures include the cost of: (i) further defining the volume and grade of deposits through drilling of core samples and other sampling techniques, trenching and sampling activities in an ore body or other forms or data acquisition; (ii) determining the optimal methods of extraction and metallurgical and treatment processes; (iii) studies related to surveying, transportation and infrastructure requirements; (iv) permitting activities; and (v) economic evaluations to determine whether development or mineralized material is commercially justified including preliminary economic assessments (“PEA”), pre-feasibility and final feasibility studies. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Once the technical feasibility and commercial viability of the extraction of mineral reserves or mineral resources from a particular mineral property has been determined, expenditures are tested for impairment and reclassified to mineral properties. The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, including: ● The extent to which mineral reserves and mineral resources as defined by NI 43-101 have been identified through a feasibility study or similar document; ● The results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study; ● The status of environmental permits; and ● The status of mining leases or permits. (g) Impairment of non-financial assets The carrying amounts of assets included in E&E assets and property and equipment are assessed for impairment at the end of each reporting period or whenever facts and circumstances suggest that the carrying amounts may not be recoverable. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash generating unit (“CGU”) to which the asset belongs is determined. The recoverable amount of an asset or CGU is determined as the higher of its fair value less costs of disposal and its value in use. An impairment loss exists if the asset’s or CGU’s carrying amount exceeds the recoverable amount and is recorded as an expense immediately. Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. Future cash flows are estimated using the following significant assumptions: mineral reserves and mineral resources, production profile, operating costs, capital costs, commodity prices, foreign exchange rates and discount rates. All inputs used are those that an independent market participant would consider appropriate. Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit for which estimates of future cash flows have not been adjusted. Tangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings (loss) immediately. (h) Decommissioning and restoration provision Decommissioning and restoration provisions are recognized when there is a significant disturbance to the areas in which E&E activities have occurred and when the provision can be estimated reliably. Decommissioning and restoration costs are estimated and discounted to their net present value and capitalized to the carrying amount of the related asset along with the recording of a corresponding liability, as soon as the obligation to incur such costs arises. The discount rate used to calculate the net present value is a pre-tax rate of similar maturity that reflects current market assessments of time value of money and the risks specific to the liability. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Each period, the Company reviews cost estimates and other assumptions used in the valuation of the provision to reflect events, changes in circumstances and new information available. The liability is adjusted each reporting period for the unwinding of the discount, changes to the current market-based discount rate and for the amount or timing of the underlying cash flows needed to settle the provision. (i) Income taxes Income tax is recognized in the statement of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable earnings. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates at the end of the reporting year applicable to the year of expected realization. A deferred tax asset is recognized only to the extent that it is probable that future taxable earnings will be available against which the asset can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, when they relate to income taxes levied by the same taxation authority and when the Company intends to settle its current tax assets and liabilities on a net basis. (j) Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares, share options and warrants are recognized as a deduction from equity, net of any tax effects. If common shares are issued as consideration for the acquisition of a mineral project, the common shares are measured at their fair value based on the quoted share price of the Company on the date the transaction is executed. The Company applies the residual value method with respect to the measurement of common shares and warrants issued as a unit for a private placement. The residual value method first allocates value to the more easily measurable component based on fair value (i.e. common shares) and then the residual value, if any, to the less measurable component (i.e. warrants). Any value attributed to the warrants is recorded to other reserves in equity. (k) Share-based payment transactions Share options granted under the Company’s equity settled share-based option plan are measured at fair value at the date of grant and recognized as an expense with a corresponding increase to other reserves in equity. An individual is classified as an employee when the individual is an employee for legal and tax purposes (direct employee) or provides services similar to those performed by a direct employee. Equity settled share-based payment transactions with non-employees are measured at the fair value of the goods or services received. However, if the fair value cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instrument granted at the date the non-employee provides the goods or the services. Fair value is determined using the Black-Scholes option pricing model, which relies on estimates of the risk-free interest rate, expected share price volatility, future dividend payments and the expected average life of the options. The fair value determined at the grant date is recognized as an expense over the vesting period in accordance with the vesting terms and conditions (graded vesting method), with a corresponding increase to other reserves in equity. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) When share options are exercised, the applicable amounts of other reserves are transferred to share capital. (l) Loss per share The Company presents loss per share data, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted loss per share is determined by adjusting the loss attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive common shares, including share options and warrants. (m) Related party transactions Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction where there is a transfer of resources or obligations between related parties. | 2. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently by the Company and its wholly-owned subsidiary and to the period presented in these consolidated financial statements. a. Basis of presentation Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Board of Directors of the Company approved these consolidated financial statements and authorized them for issue on March 15, 2022. Basis of Measurement These consolidated financial statements of the Company have been prepared on an accrual basis, and are based on historical costs, except for financial instruments measured at fair value. Functional and Presentation Currency These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. The subsidiary’s functional currency is United States dollars. All financial information is expressed in Canadian dollars unless otherwise stated and has been rounded to the nearest dollar. 2. SIGNIFICANT ACCOUNTING POLICIES, continued b. Basis of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Austin American Corporation (“Austin NV”), from the Company’s incorporation on April 21, 2020. All significant intercompany accounts and transactions between the Company and its subsidiary have been eliminated upon consolidation. Proportion of Place of Ownership Name of Subsidiary Incorporation Interest Principal Activity Austin American Corporation Nevada, United States 100 % Exploration company c. Use of estimates and judgements The preparation of these consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from management’s best estimates as additional information becomes available. Significant areas requiring the use of management estimates and judgments include: i) The determination of the fair value of the shares of the Company for the calculation of the share-based compensation. ii) The determination of the fair values of warrants held as marketable securities by the Company. iii) The assessment of the Company’s ability to continue as a going concern involves judgment regarding future funding available to identify new business opportunities and working capital requirements, the outcome of which is uncertain. iv) The determination that exploration, evaluation, and related costs incurred which were capitalized may have future economic benefits and may be economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including: geologic and other technical information, a history of conversion of mineral deposits with similar characteristics to its own properties to proven and probable mineral reserves, the quality and capacity of existing infrastructure facilities, evaluation of permitting and environmental issues and local support for the project. v) The measurement of deferred income tax assets and liabilities. d. Financial instruments Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives). 2. SIGNIFICANT ACCOUNTING POLICIES, continued d. Financial instruments, continued Measurement Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. The Company’s accounts payables are classified at amortized cost. Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in consolidated statements of comprehensive income (loss). Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in profit or loss. The Company’s cash and marketable securities are classified as FVTPL. Financial assets at FVTOCI are initially recorded at fair value adjusted for transaction costs. Dividends are recognized as income in the consolidated statements of comprehensive income (loss) unless the dividend clearly represents a recovery of part of the cost of the investment. Gains or losses recognized on the sale of FVOTCI investment are recognized in other comprehensive income (loss) and are never reclassified to profit or loss. Impairment An ‘expected credit loss’ impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive income (loss). e. Cash and cash equivalents Cash and cash equivalents include cash in banks and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. 2. SIGNIFICANT ACCOUNTING POLICIES, continued f. Property, plant and equipment Property, plant and equipment, reported herein as fixed assets, are carried at cost, less accumulated amortization and accumulated impairment losses. Cost comprises the fair value of consideration given to acquire an asset and includes the direct expenditures associated with bringing the asset to the location and condition necessary for putting it into use along with the future cost of dismantling and removing the asset. When parts of an item of fixed assets have different useful lives, they are accounted for as separate items (major components) of fixed assets. Amortization is calculated over the useful life of the asset at rates ranging from 15% to 30% per annum once the asset is available for use. Amortization charges on assets that are directly related to mineral properties are allocated to that mineral property. g. Foreign currencies Transactions in currencies other than the functional currency are recorded at the rate of exchange prevailing on the dates of transactions. Monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at each reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign currency translation differences are recognized in profit or loss, except for differences on the retranslation of fair value through other comprehensive income (FVTOCI) instruments, which are recognized in other comprehensive (income)/ loss. h. Mineral property interests Expenditures on mineral exploration or evaluation incurred in respect of a property before the acquisition of a license to explore are expensed as incurred, to general exploration. Once the legal rights to explore a specific area have been obtained, expenditures on exploration and evaluation activities are capitalized as exploration and evaluation assets. Mineral property acquisition costs are included in exploration and evaluation and include any cash consideration and advance royalties paid, and the fair market value of shares issued, if any, on the acquisition of the mineral property interest. Properties acquired under option agreements, whereby payments are made at the sole discretion of the Company, are recorded in the accounts when the payments are made. Exploration expenditures relate to the initial search for deposits with economic potential and to detailed assessments of deposits or other projects that have been identified as having economic potential. All capitalized exploration and evaluation expenditures are monitored for indications of impairment. Where a potential impairment is indicated, assessments are performed for each area of interest. Once an economically viable reserve has been determined for an area and the decision to proceed with development has been approved, exploration and evaluation assets attributable to that area are first tested for impairment and then reclassified to property, plant and equipment. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers, or title may be affected by undetected defects. 2. SIGNIFICANT ACCOUNTING POLICIES, continued i. Impairment of non-current assets At each reporting period, management reviews mineral interest and property, plant and equipment for indicators of impairment. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction. In assessing value in use, the estimated future cash flows are discounted to their present value. If the recoverable amount of the asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in the profit or loss for that period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which that asset belongs. Past impairments are also considered at each reporting period and where there is an indication that an impairment loss may have decreased, the recoverable amount is calculated as outlined above to determine the extent of the recovery. If the recoverable amount of the asset is more than its carrying amount, the carrying amount of the asset is increased to its recoverable amount and the impairment loss is reversed in the profit or loss for that period. The increased carrying amount due to reversal will not be more than what the depreciated historical cost would have been if the impairment had not been recognized. j. Decommissioning obligations The Company recognizes liabilities for statutory, contractual, legal or constructive obligations associated with the retirement of property, plant and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. Initially, a provision for a decommissioning obligation is recognized at its net present value in the period in which it is incurred, using a discounted cash flow technique with market-based risk-free discount rates and estimates of the timing and amount of the settlement of the obligation. Upon initial recognition of the liability, the corresponding decommissioning cost is added to the carrying amount of the related asset. Following initial recognition of the decommissioning obligation, the carrying amount of the liability is increased for the passage of time and adjusted for changes to significant estimates including the current discount rate, the amount or timing of the underlying cash flows needed to settle the obligation and the requirements of the relevant legal and regulatory framework. Subsequent changes in the provisions resulting from new disturbance, updated cost estimates, changes to estimated lives of operations and revisions to discount rates are also capitalized to the related asset. Amounts capitalized are depreciated over the lives of the assets to which they relate. The amortization or unwinding of the discount applied in establishing the net present value of provisions is charged to expense and is included within finance costs in the consolidated statement of comprehensive loss. k. Other provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of past events, and it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. l. Taxation Income tax expense is comprised of current and deferred tax. Current tax and deferred taxes are recognized in the consolidated statements of comprehensive income (loss) except to the extent that they relate to items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date. 2. SIGNIFICANT ACCOUNTING POLICIES, continued l. Taxation, continued Deferred tax is recognized in respect of unused tax losses and credits, as well as temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on enacted or substantively enacted laws at the reporting date. The Company computes the provision for deferred income taxes under the liability method. A deferred tax asset is recognized for unused tax losses, tax credits, and deductible temporary differences, only to the extent that it is probable that future taxable profits will be available against which they can be utilized. Where applicable, the probability of utilizing tax losses or credits is evaluated by considering risks relevant to future cash flows and the expiry dates after which these losses or credits can no longer be utilized. Deferred tax is not recognized for the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries, associates and joint arrangements to the extent that it is probable that they will not reverse in the foreseeable future. The Company is subject to assessments by various taxation authorities, who may interpret tax legislation differently from the Company. The final amount of taxes to be paid depends on a number of factors, including the outcomes of audits, appeals, or negotiated settlements. Such differences are accounted for based on management’s best estimate of the probable outcome of these matters. The Company must make significant estimates and judgments in respect of its provision for income taxes and the composition and measurement of its deferred income tax assets and liabilities. The Company’s operations are, in part, subject to foreign tax laws where interpretations, regulations and legislation are complex and continually changing. As a result, there are usually some tax matters in question that may, upon resolution in the future, result in adjustments to the amount of deferred income tax assets and liabilities; those adjustments may be material. m. Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the more easily measurable component based on fair value and then the residual value, if any, to the less measurable component. The Company considers the fair value of common shares issued in a unit private placement to be the more easily measurable component. The balance, if any, is allocated to the attached warrants. Any value attributed to the warrants is recorded as reserves. 2. SIGNIFICANT ACCOUNTING POLICIES, continued n. Share-based compensation The Company’s stock option plan allows the Company’s directors, officers, employees, and consultants to acquire shares of the Company. The fair value of options granted is recognized as share-based compensation expense or capitalized to mineral interests with a corresponding increase in share-based payment reserves. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Where options are subject to vesting, each vesting tranche is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the grant date using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted. Share-based compensation expense is recognized over the tranche’s vesting period by a charge to profit or loss. For employees, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Compensation expense for share options granted to non-employees is recognized over the contract services period or, if none exists, from the date of grant until the options vest. Compensation associated with unvested options granted to non-employees is re-measured on each statement of financial position date. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of options that are expected to vest. In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, or where the fair value of goods or services received is not reliably measurable, they are measured at the fair value of the share-based compensation. Otherwise, share-based compensation is measured at the fair value of goods or services received. o. Loss per share Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average common shares outstanding are increased to include additional shares for the assumed exercise of share options and share purchase warrants, if dilutive. The number of additional common shares is calculated by assuming that outstanding share options and share purchase warrants were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting periods. p. Related party transactions Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction where there is a transfer of resources or obligations between related parties. q. Adoption of new accounting standards, interpretations and amendments The Company has performed an assessment of new standards issued by the IASB that are not yet effective. The Company has assessed that the impact of adopting these accounting standards on its financial statements would not be significant |
SIGNIFICANT ACCOUNTING ESTIMATE
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS | |
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS | 4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements requires the use of accounting estimates. It also requires management to exercise judgment in the process of applying its accounting policies. Estimates and policy judgments are regularly evaluated and are based on management’s experience and other factors, including expectations about future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant accounting policy judgments include: ● The determination of functional currency requires judgment where the operations of the Company are changing or currency indicators are mixed. Additionally, the timing of a change in functional currency is a judgment as the balance of currency indicators may change over time. For the impact on the consolidated results from the change in functional currency, refer to Note 3b. ● The assessment of the Company’s ability to continue as a going concern which requires judgment related to future funding available to identify new business opportunities and meet working capital requirements, the outcome of which is uncertain (refer to Note 1b); and ● The application of the Company’s accounting policy for impairment of E&E assets which requires judgment to determine whether indicators of impairment exist including factors such as the period for which the Company has the right to explore, expected renewals of exploration rights, whether substantive expenditures on further E&E of resource properties are budgeted and evaluation of the results of E&E activities up to the reporting date. Management assessed impairment indicators for the Company’s E&E assets and has concluded that no impairment indicators exist as of December 31, 2022. Significant sources of material estimation uncertainty include: ● The determination of the fair value of warrants held as marketable securities by the Company (refer to Note 8); ● The determination of the fair value of underwriter warrants issued by the Company as part of the IPO (refer to Note 12d); and ● The determination of the fair value of share options and warrants issued by the Company (refer to Note 12c and 12d). |
NEW ACCOUNTING STANDARDS AND RE
NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS | |
NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS | 5. NEW ACCOUNTING STANDARDS AND RECENT PRONOUNCEMENTS The following standards, amendments and interpretations have been issued but are not yet effective: ● In January 2020, the IASB issued amendments to International Accounting Standard (“IAS”) 1, Presentation of Financial Statements to clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Liabilities should be classified as non-current if a company has a substantive right to defer settlement for at least twelve months at the end of the reporting period. The amendments are effective January 1, 2023 with early adoption permitted. Retrospective application is required on adoption. This amendment is not expected to have a material impact on the Company. There are no other IFRS standards or International Financial Reporting Interpretations Committee interpretations that are not yet effective or early adopted that are expected to have any impact on the Company. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 6. SHORT-TERM INVESTMENTS December 31, December 31, 2022 2021 Term deposits $ 10,144,301 $ — RSTICs 1,504,778 — $ 11,649,079 $ — The term deposits and RSTICs mature on February 10, 2023 and November 29, 2023, respectively. |
RECEIVABLES AND OTHER
RECEIVABLES AND OTHER | 12 Months Ended |
Dec. 31, 2022 | |
RECEIVABLES AND OTHER | |
RECEIVABLES AND OTHER | 7. RECEIVABLES AND OTHER December 31, December 31, 2022 2021 Prepaid expenses and deposits $ 176,703 $ 9,016 Tax receivables 34,582 3,721 $ 211,285 $ 12,737 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
MARKETABLE SECURITIES | ||
MARKETABLE SECURITIES | 8. MARKETABLE SECURITIES As at December 31, 2022, the Company holds 2,231,000 common shares (2021 – 2,231,000 ) and 1,250,000 warrants (2021 – 1,250,000 ) in Nevada Exploration Inc. (“NGE”). A continuity of the marketable securities is as follows: December 31, December 31, 2022 2021 Opening balance $ 196,847 $ 334,676 Realized gain on sale of marketable securities — 6,443 Proceeds from disposition of marketable securities — (38,632) Foreign exchange movements (5,740) 3,013 Unrealized fair value loss on marketable securities (174,634) (108,653) Ending balance $ 16,473 $ 196,847 As at December 31, 2022, the estimated fair value of the warrants in NGE was $1 (2021 – $3,275 ) determined using the Black-Scholes pricing model using the following assumptions: December 31, December 31, 2022 2021 Share price C$ 0.01 C$ 0.11 Exercise price C$ 0.50 C$ 0.50 Expected life 0.02 years 1.02 years Expected volatility 93.10 % 86.99 % Risk-free interest rate 4.30 % 0.25 % Expected dividend yield Nil Nil Subsequent to December 31, 2022, on January 7, 2023, the warrants in NGE expired in accordance with the terms of the private placement. | 3. MARKETABLE SECURITIES The Company holds all marketable securities in an account with a Canadian broker. Pursuant to a letter of intent with Nevada Exploration (see note 4a), on July 7, 2020 the Company participated in a private placement with Nevada Exploration Inc. purchasing 2,500,000 units at $0.20 per unit for a cost of $500,000 . Each unit consists of one common share, and one -half of one warrant, with each whole warrant entitling the Company to acquire one additional common share at a price of $0.50 per whole warrant for a period of 30 months following closing; provided that if either (or both) of the volume weighted average price or the closing price (or closing bid price on days when there are no trades) of the common shares of Nevada Exploration traded (or quoted) on the TSX-V is greater than $0.90 per share for 10 consecutive trading days, then Nevada Exploration shall have the right to accelerate the warrant expiry date to the 30 th day after the date on which Nevada Exploration gives notice to the Company in accordance with the certificates representing the warrants. During the year ended December 31, 2021, the Company sold 269,000 common shares for net proceeds of $48,425 , and a realized gain of $8,075 . As at December 31, 2021, the estimated fair value of the 2,231,000 (2020: 2,500,000 ) shares held by the Company was $245,410 (2020: $375,000 ) determined using the closing price on the TSX Venture Exchange, and the estimated fair value of the 1,250,000 warrants was $4,152 (2020: $51,109 ) determined using the Black-Scholes pricing model with the following assumptions: December 31, 2021 December 31, 2020 Share price $ 0.11 $ 0.15 Exercise price $ 0.50 $ 0.50 Volatility 87 % 104 % Risk free interest rate 0.25 % 0.25 % Expected life 1.02 years 2.0 years Expected dividend yield $ nil $ nil During the year ended December 31, 2021, the Company recognized an unrealized loss on marketable securities of $136,197 (2020: $ 73,891 ). |
E&E ASSETS
E&E ASSETS | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
E&E ASSETS | ||
E&E ASSETS | 9. E&E ASSETS The E&E assets of the Company, by property and nature of expenditure, as of December 31, 2022 and 2021 were as follows: Kelly Fourmile Lone Stockade Creek Basin Mountain Miller Mountain Total Balance - December 31, 2020 $ 231,414 $ 346,675 $ 108,648 $ — $ — $ 686,737 E&E expenditures: Acquisition costs 50,000 34,242 30,000 61,702 — 175,944 Consulting 656 21,300 7,236 2,109 — 31,301 Field work — 1,843 — — — 1,843 Finders’ fees — — — 10,000 — 10,000 Geophysics — — — 3,188 — 3,188 Mapping — 277 188 5,919 — 6,384 Mining rights and claim fees 95,958 54,669 80,370 114,919 — 345,916 Technical reports 1,126 6,120 11,285 — — 18,531 Travel — 4,835 — — — 4,835 Total E&E expenditures 147,740 123,286 129,079 197,837 — 597,942 Movement in foreign exchange — 1,477 — — — 1,477 Balance - December 31, 2021 $ 379,154 $ 471,438 $ 237,727 $ 197,837 $ — $ 1,286,156 E&E expenditures: Acquisition costs 50,000 54,433 20,000 25,000 25,000 174,433 Assays 24,554 — — — — 24,554 Consulting 12,693 47,007 7,406 7,956 16,329 91,391 Drilling 327,145 96,993 — — — 424,138 Field supplies 2,121 — — — 2,250 4,371 Field work 1,500 2,332 — — — 3,832 Finders’ fees — — — 10,000 — 10,000 Geophysics 3,000 — — 1,769 — 4,769 Mapping 6,375 — — 5,250 — 11,625 Mining rights and claim fees 96,333 53,095 80,370 49,749 46,666 326,213 Share-based compensation 5,235 5,233 5,235 5,235 5,235 26,173 Travel 6,769 4,144 — 44 566 11,523 Total E&E expenditures 535,725 263,237 113,011 105,003 96,046 1,113,022 Movement in foreign exchange — (30,144) — — — (30,144) Balance - December 31, 2022 $ 914,879 $ 704,531 $ 350,738 $ 302,840 $ 96,046 $ 2,369,034 Acquisition costs include pre-production payments, lease payments and advanced royalty payments in accordance with the terms of the property agreements. 9. E&E ASSETS (Continued) (a) Kelly Creek Project (Nevada, USA) The Company entered into an agreement with Pediment Gold LLC (“Pediment”), a subsidiary of NGE, for an option to earn up to a 70% interest in a joint venture on the Kelly Creek Project. The Company may exercise the option to earn a 51% interest by incurring the following minimum annual E&E expenditures on the project: September 1, 2022 C$ 750,000 (1) Complete June 1, 2023 C$ 1,000,000 In progress June 1, 2024 C$ 1,500,000 In progress June 1, 2025 C$ 1,500,000 In progress (1) $400,000 must be spent on geophysics, geochemistry, drilling or other mutually agreed program. The Company has the option to increase its participating interest by an additional 19 % to a total of 70 % by incurring additional annual E&E expenditures in the amount of C $1,500,000 before each of June 1, 2026, June 1, 2027 and June 1, 2028 and by delivering a pre-feasibility study prior to June 1, 2029. At Pediment’s election, within 120 days of the approval by the joint venture of a feasibility study, the Company will be obligated to provide NGE’s portion of any debt financing or arrange for third party financing of NGE’s portion of any debt financing required to construct a mine on the project in consideration for the transfer by Pediment to the Company an additional 5% interest in the joint venture. There are minimum annual royalty payments required by the Company as part of two underlying agreements within the Kelly Creek Project including: (i) the Genesis agreement and (ii) the Hot Pot agreement. Under the Genesis agreement, the joint venture has the option to purchase 100% of the Genesis claims for $1,500,000 (as adjusted for inflation), subject to a 1.5 % net smelter return royalty and the following advance royalty payments: October 1, 2020 $ 20,000 Paid October 1, 2021 $ 20,000 Paid October 1, 2022 $ 20,000 Paid October 1, 2023 and every year thereafter $ 50,000 (1) (1) In accordance with the terms of the agreement, the amount will be adjusted for inflation. Cumulative advanced royalty payments will be credited against royalty payment obligations and the purchase price. The net smelter return royalty can be reduced by 50% to 0.75% upon payment of $750,000 (as adjusted for inflation). Under the Hot Pot agreement, the Company is subject to the following minimum payments: September 16, 2021 $ 30,000 Paid September 16, 2022 $ 30,000 Paid September 16, 2023 and every year thereafter $ 30,000 9. E&E ASSETS (Continued) Any mineral production on the claims is subject to a 3.0 % net smelter return royalty which can be reduced to 2.0 % upon payment of $2,000,000 . The Hot Pot lease and any additional property within 2.5 miles of the original boundary of the claims is also subject to 1.25 % net smelter return royalty in favour of Battle Mountain Gold Exploration Corporation. (b) Fourmile Basin Property (Nevada, USA) The Company entered into a mineral lease agreement with La Cuesta International, Inc. (“LCI”) on the Fourmile Basin Property. Under the terms of the agreement, the Company is subject to the following pre-production payments: June 18, 2020 $ 25,000 Paid 33,333 common shares Issued December 18, 2020 $ 5,000 Paid June 18, 2021 $ 10,000 Paid December 18, 2021 $ 10,000 Paid June 18, 2022 $ 15,000 Paid December 18, 2022 and every six months thereafter $ 20,000 Paid In addition, the Company is required to incur the following minimum E&E expenditures on the property: Year 1 from date of agreement $ 30,000 Complete Year 2 to Year 3 from date of agreement $ 50,000 Complete The Company is required to pay a production royalty of 2.0% of the net smelter returns for claims 100% owned by LCI and 0.5% of the net smelter returns for third party claims within LCI’s area of influence. Payments to LCI totaling $10,000,000 in any combination of pre-production payments, production or minimum royalties will reduce the production royalties by 50% to 1.0% and 0.25% , respectively. Pre-production payments are deductible against future production royalties. Under the terms of the Fourmile Basin mineral lease agreement, the Company is required to fulfill obligations to NexGen Mining Inc. (“NexGen”) which holds certain properties within the Fourmile Basin lease boundary. Under the agreement, the Company is subject to the following cash advanced royalty payments: October 24, 2020 $ 10,000 Paid October 24, 2021 $ 15,000 Paid October 24, 2022 $ 20,000 Paid October 24, 2023 and every year thereafter $ 25,000 The Company is required to incur the following minimum E&E expenditures on the property: October 24, 2020 $ 5,000 Complete October 24, 2021 $ 10,000 Complete October 24, 2022 $ 15,000 Complete October 24, 2023 $ 20,000 In progress October 24, 2024 and every year thereafter $ 20,000 In progress Any mineral production on the NexGen claims is subject to a 2.0% net smelter return royalty. The net smelter return royalty can be reduced by 1.0% for $250,000 and the remaining 1.0% for $500,000 . 9. E&E ASSETS (Continued) (c) Lone Mountain Property (Nevada, USA) The Company entered into a mineral lease agreement with option to purchase the Lone Mountain Project with NAMMCO. Under the terms of the agreement, the Company is subject to the following pre-production payments: Signing of the lease $ 80,000 Paid November 1, 2021 $ 30,000 Paid November 1, 2022 $ 20,000 Paid November 1, 2023 $ 20,000 November 1, 2024 $ 30,000 November 1, 2025 and every year thereafter (1) $ 30,000 (1) Pre-production payments increase by $10,000 every year after November 1, 2025 to a maximum of $200,000 . The Company is required to incur the following minimum E&E expenditures on the property: September 1, 2024 $ 150,000 In progress September 1, 2025 $ 250,000 In progress September 1, 2026 $ 300,000 In progress September 1, 2027 $ 300,000 In progress September 1, 2028 $ 400,000 In progress September 1, 2029 (1) $ 400,000 In progress (1) The work commitment terminates when $1,800,000 has been spent on the property. Any mineral production on the claims is subject to a 3.0% net smelter return royalty. The net smelter return royalty can be reduced by 0.5% to 2.5% for $2,000,000 . The Company has the option to purchase the entire interest in the project, except for the royalty, once there is a discovery of at least 500,000 ounces of gold (or equivalent in other metals) or a pre-feasibility study has been completed. The Company may exercise this option by payment of $2,000,000 , reduced by the pre-production payments paid to the date of purchase. (d) Miller Project (Nevada, USA) The Company entered into a mineral lease agreement with the option to purchase the Miller Project with Shea Clark Smith and Gregory B. Maynard on February 1, 2021. Under the terms of the agreement, the Company is subject to the following annual lease payments: Signing of the lease $ 50,000 Paid 5,000 common shares Issued February 1, 2022 $ 25,000 Paid February 1, 2023 $ 25,000 Paid (1) February 1, 2024 and every year thereafter $ 30,000 (2) (1) The amount was paid subsequent to December 31, 2022. (2) Lease payments of $30,000 are required every year after February 1, 2024, until a total of $500,000 has been paid. The Company is required to drill 2,000 meters by November 4, 2023 and an additional 3,000 meters by May 4, 2025. The Company has the option to purchase the lease outright at any time for $500,000 less cumulative lease payments to the date of purchase. Any mineral production on the claims is subject to a 2.0% net smelter return royalty and third-party claims acquired within the area of influence are subject to a 0.5% net smelter return royalty. The 2.0% net smelter return royalty can be reduced by 50% to 1.0% for $2,000,000 . 9. E&E ASSETS (Continued) The Miller Project was recommended to the Company by Bull Mountain Resources, LLC (“BMR”). As a result, the Company is required to make finders’ fee payments in accordance with the introductory agent agreement (refer to Note 17). The Miller Project consists of 117 claims in the original lease agreement and an additional 164 claims which were staked in January 2021 for a total of 281 unpatented lode mining claims covering approximately 23.5 km 2 . Although the Company had filed the required documentation with the Bureau of Land Management (“BLM”) and county officials as required, there was a dispute regarding ownership of 134 newly staked claims and 36 original claims. Management has been monitoring the BLM and county registration sites to confirm whether property maintenance fees were paid on the disputed claims by the contending party. The contending party did not pay the property maintenance fees on the disputed claims when they were due on September 1, 2022. The Company believes it is probable that a future economic benefit will flow to the Company from this property. As at December 31, 2022, the carrying value of the Miller Project is $302,840 . (e) Stockade Mountain Property (Oregon, USA) The Company entered into a mineral lease and option agreement with BMR to lease a 100% interest in the Stockade Mountain Property. Under the terms of the agreement, the Company is subject to the following pre-production payments: May 16, 2022 $ 15,000 Paid November 16, 2022 $ 10,000 Paid May 16, 2023 $ 10,000 November 16, 2023 $ 15,000 May 16, 2024 $ 15,000 November 16, 2024 and every six months thereafter $ 25,000 The Company is required to incur the following minimum E&E expenditures on the property: May 16, 2023 $ 30,000 In progress May 16, 2024 2,000 meters of drilling In progress BMR will retain a 2.0% net smelter return royalty on claims owned by BMR and 0.25% net smelter return royalty on third-party claims acquired within the area of influence around the property. Payments to BMR totaling $10,000,000 in any combination of pre-production payments, production or minimum royalties will reduce the production royalties on wholly owned claims by 50% to 1.0% . | 4. EXPLORATION AND EVALUATION ASSETS Kelly Fourmile Lone Miller Creek Basin Mountain Project Total $ $ $ $ $ Expenditures: Acquisition costs* 66,233 67,120 104,240 — 237,593 Consulting 24,870 15,406 4,519 — 44,795 Geology 1,642 — — — 1,642 Geophysics 9,642 651 — — 10,293 Mapping 1,889 — — — 1,889 Mining rights and claim fees 126,732 128,769 — — 255,501 Reports 40,618 — — — 40,618 Share-based compensation 32,567 227,966 32,567 — 293,100 Travel — 1,475 — — 1,475 Total exploration costs 304,193 441,387 141,326 — 886,906 Movement in foreign exchange (9,048) — (2,487) — (11,535) Balance at December 31, 2020 295,145 441,387 138,839 — 875,371 Expenditures: Acquisition costs* 63,000 43,412 37,800 78,300 222,512 Consulting 827 27,004 9,152 2,660 39,643 Field work — 2,337 — — 2,337 Finders fees — — — 12,630 12,630 Geophysics — — — 4,016 4,016 Mapping — 351 230 7,302 7,883 Mining rights and claim fees 120,907 69,309 101,266 145,189 436,671 Technical reports 1,426 7,759 14,287 — 23,472 Travel — 6,130 — — 6,130 Total exploration costs 186,160 156,302 162,735 250,097 755,294 Movement in foreign exchange 32 — 461 885 1,378 Balance at December 31, 2021 481,337 597,689 302,035 250,982 1,632,043 *Acquisition costs includes pre-production payments, lease payments, and advanced royalty payments a. Kelly Creek Project, Nevada, United States On May 29, 2020, the Company entered into a letter of intent, as amended on June 24, 2020 (the “JV LOI”), with Nevada Exploration Inc. (“Nevada Exploration”), which contemplated an option for the Company to earn up to a 70% interest in a joint venture (the “Option to Joint Venture”) with Nevada Exploration in Nevada Exploration’s Kelly Creek project, located in Humboldt County, Nevada (the “Kelly Creek Project”). In accordance with the JV LOI, the Company agreed to purchase, pursuant to a private placement, 2,500,000 units at a price of $0.20 per unit of Nevada Exploration for a total amount of $500,000 (see note 3). On July 7, 2020, pursuant to the JV LOI, the Company entered into a definitive agreement (the “JV Agreement”) through Austin American Corporation (“Austin NV”), a wholly-owned subsidiary of the Company and Pediment Gold LLC (“Pediment”), a subsidiary of Nevada Exploration, whereby Austin NV will be able to exercise the Option to Joint Venture. On March 3, 2021, the Company signed an amendment to the JV Agreement that adjusted the minimum yearly expenditure requirements and extended the other deadlines within the agreement by one year . 4. EXPLORATION AND EVALUATION ASSETS, continued a. Kelly Creek Project, Nevada, United States, continued In accordance with the JV Agreement, as amended, Austin NV may exercise the option to earn a 51% interest in the Kelly Creek Project by incurring the following minimum yearly expenditures toward exploration and development work at the Kelly Creek Project: Original Amended September 1, 2021 $ 1,000,000 $ nil June 1, 2022 $ 1,000,000 $ nil September 1, 2022 $ nil $ 750,000 * June 1, 2023 $ 1,500,000 $ 1,000,000 June 1, 2024 $ 1,500,000 $ 1,500,000 June 1, 2025 $ nil $ 1,500,000 * $400,000 of which must be spent on geophysics, geochemistry, drilling, or other mutually agreed program. During the earn in period, Austin NV will be the operator of the project. Once the Option to Joint Venture has been exercised to earn the 51% interest, the Company and Pediment will enter into a joint venture agreement based on the Rocky Mountain Mineral Law Foundation Exploration, Development and Mining LLC Model Form 5A LLC Operating Agreement. Pursuant to the JV Agreement, as amended, Austin NV shall have the option and right to increase its participating interest in the Kelly Creek Project by an additional 19% to a total of 70% (the “Additional Option”) by incurring additional yearly expenditures in the amount of $1,500,000 before each of June 1, 2026, June 1, 2027 and June 1, 2028 and by delivering a prefeasibility study prior to June 1, 2029. At Pediment’s election, which must be made within 120 days of the approval by the joint venture of a feasibility study, Austin Gold will be obligated to provide Nevada Exploration’s portion of any debt financing or arrange for third party financing of Nevada Exploration’s portion of any debt financing required to construct a mine on the project described in the feasibility study in consideration for the transfer by Pediment to Austin NV of a 5% interest in the Joint Venture. If a party is diluted to a 10% interest in the Joint Venture, its interest will be converted to a 10% net profits interest. There are minimum annual royalty payments in two underlying agreements within the Kelly Creek Project: the Genesis agreement, and the Hot Pot agreement that the Company is also obligated to pay. Under the Genesis agreement, the Joint Venture has the option to purchase 100% of the Genesis claims for USD $1,500,000 (as adjusted for inflation), subject to a 1.5% net smelter return royalty, and the following advance royalty payments: October 1, 2020 US$ 20,000 (paid) October 1, 2021 US$ 20,000 (paid) October 1, 2022 US$ 20,000 October 1, 2023 and annually thereafter US$ 50,000 (as adjusted for inflation) The cumulative advance royalty payments shall be credited against royalty payment obligations and against the purchase price. Half of the net smelter return royalty can be bought for US $750,000 (as adjusted for inflation) and the royalty would then be 0.75% . The Hot Pot lease is subject to the annual payment of US $30,000 due on September 16 th each year (2020 and 2021 – paid). Under the Hot Pot agreement, any mineral production on the project is subject to a 3% net smelter return royalty to the property owner, subject to the Joint Venture’s right to reduce the royalty from 3% to 2% for US $2,000,000 . 4. EXPLORATION AND EVALUATION ASSETS, continued a. Kelly Creek Project, Nevada, United States, continued The Hot Pot lease and any additional property, if all or any part of such property lies within 2.5 miles of the original boundary of the Hot Pot property, is also subject to a 1.25% net smelter returns royalty in favour of Battle Mountain Gold Exploration Corporation. b. Fourmile Basin Property, Nevada, United States On June 18, 2020 (the “Effective Date”), the Company entered into a mineral lease agreement (“Fourmile Mineral Lease”) with La Cuesta International, Inc. (“LCI”) for exploration and mining rights and access to certain mineral claims on the Fourmile Basin Property situated in Nye County, Nevada. The primary term of the Fourmile Mineral Lease is for a period of 35 years from the Effective Date. The lease may be extended up to 50 years so long as the Company meets the required payments to LCI as outlined below. The agreement may extend past 50 years so long as active mining operations are then continuing on the premises, in which case the Fourmile Mineral Lease shall continue so long as such operations are being conducted. Pursuant to the Fourmile Mineral Lease, the Company must make the following pre-production payments: Effective Date US$ 25,000 cash (paid) 33,333 Company shares (issued) 6 months after Effective Date (December 18, 2020) US$ 5,000 cash (paid) 12 months after Effective Date (June 18, 2021) US$ 10,000 cash (paid) 18 months after Effective Date (December 18, 2021) US$ 10,000 cash (paid) 24 months after Effective Date (June 18, 2022) US$ 15,000 cash 30 months after Effective Date and every 6 months thereafter US$ 20,000 cash Pre-production payments paid to LCI will apply to the entire premises and are deductible against future production royalties to be paid to LCI regardless of the year in which advance royalty payments are made. In addition to pre-production payments, the Company must pay the annual claim fees and landholdings costs, as well as incur the following minimum exploration costs on the premises (or pay to LCI the equal amount in cash at the end of the relevant time period): Year 1 from Effective Date US$ 30,000 (fulfilled) Year 2 to Year 3 from Effective Date US$ 50,000 ( $34,000 fulfilled as at December 31, 2021) Work completed that exceeds the minimum requirement for a given year may be applied to requirements stipulated for subsequent years. Work commitments shall not be deducted against the production royalty. Under the terms of the agreement, the Company must pay a production royalty of 2% of the net smelter returns for claims owned 100% by LCI, and 0.5% of the net smelter returns for third-pay claims and/or fee lands acquired within LCI’s area of influence. Payments to LCI totalling US $10,000,000 in any combination of pre-production payments, production and minimum royalties shall reduce LCI’s royalties by 50% to 1% and 0.25% respectively. Production royalties shall be paid quarterly and will be the greater of a) US $25,000 per quarter or b) the production royalty payable in accordance with the NSR Royalty. Any positive difference in the quarterly payment between a) minus b) payable for that quarter shall be credited against the production royalty. 4. EXPLORATION AND EVALUATION ASSETS, continued b. Fourmile Basin Property, Nevada, United States, continued Mining Lease with NexGen Mining Incorporated Under the terms of the Fourmile Mineral Lease, the Company must also fulfill certain obligations to NexGen Mining Incorporated (“NexGen”) who holds certain properties within the Fourmile Mineral Lease. Pursuant to this contingent lease agreement (the “NexGen Lease”), the Company must incur the following expenditures: October 24, 2020 US$ 5,000 (fulfilled) October 24, 2021 US$ 10,000 (fulfilled) October 24, 2022 US$ 15,000 (fulfilled) October 24, 2023 US$ 20,000 (US $10,000 fulfilled) October 24, 2024 and every year thereafter US$ 20,000 In the event any single year’s work requirement is not completed, the balance of the work commitment may be paid in cash to NexGen, and excess expenditures may be applied to subsequent year(s) expenditure commitment. Once the property is in production at a minimum sustained rate of 100 tons per day the work requirement shall be suspended for so long as the property remains in production at that rate. Advanced royalty payments, claim maintenance fees, and new claim staking and filing fees are not considered work commitment expenses. On November 7, 2020, NexGen agreed to apply US $40,000 of work expenditures incurred by a prior lessee against the Company’s expenditure requirements. This agreement satisfied the Company’s work requirements for 2020, 2021, 2022, and US $10,000 of the October 2023 expenditures. In addition to the work commitment expenses, the Company must make the following cash advanced royalty payments to NexGen: October 24, 2020 US$ 10,000 (paid) October 24, 2021 US$ 15,000 (paid) October 24, 2022 US$ 20,000 October 24, 2023 and every year thereafter US$ 25,000 The Company must also pay NexGen a 2.0% net smelter royalty and the Company has a royalty buy down under which the Company may purchase NexGen’s 2.0% net smelter royalty. The purchase price is US $250,000 for the first 1%, and US $500,000 for the remaining 1% of the total net smelter return reserved to NexGen. c. Lone Mountain Project, Nevada, United States On September 15, 2020, the Company signed a Letter of Intent with NAMMCO (the “LOI”). The LOI contemplated that the agreement will be a lease with option to purchase mining claims located in Elko County, Nevada (the “Lone Mountain project”). On November 1, 2020, pursuant to the LOI, the Company entered into a definitive agreement with NAMMCO through Austin NV. The agreement has a term of 10 years plus 10 - year extensions so long as the minimum payments are paid. The owner will retain a 3% net smelter return royalty on the Lone Mountain project. At any time, the Company can buy one -half percentage point of the royalty for US $2,000,000 , reducing the royalty from 3% to 2.5% . 4. EXPLORATION AND EVALUATION ASSETS, continued c. Lone Mountain Project, Nevada, United States, continued The Company will have the option to purchase the entire interest in the Lone Mountain project, except for the royalty, at any time during the lease or the lease extension once the Company has made a discovery of equal to or greater than 0.5 million ounces of gold (or equivalent in other metals) or completed a pre-feasibility study. If the Company elects to exercise the option to purchase, the Company must pay the owner US $2,000,000 . The purchase price shall be reduced by the pre-production payments paid to the date of purchase. Pursuant to the agreement, the Company must make the following pre-production payments to NAMMCO: Within 5 days of signing the lease US$ 80,000 (paid) November 1, 2021 US$ 30,000 (paid) November 1, 2022 US$ 30,000 November 1, 2023 US$ 30,000 November 1, 2024 US$ 40,000 November 1, 2025 and each year thereafter Increasing by US $10,000 /year thereafter to a maximum of US $200,000 Each cash pre-production payment shall be credited against the purchase price until the purchase price is paid in full, then the pre-production payments will be credited against the future production royalties as an advance royalty. Effective April 29, 2021, the Company signed an amendment to the Lone Mountain definitive agreement. Pursuant to the amended agreement, the Company will be required to pay the annual claim maintenance fees, and fulfill the following annual work commitments on the Lone Mountain project: Original Amended September 1, 2021 US$ 150,000 US$ nil September 1, 2022 US$ 250,000 US$ 400,000 September 1, 2023 US$ 300,000 US$ 300,000 September 1, 2024 US$ 300,000 US$ 300,000 September 1, 2025 US$ 400,000 US$ 400,000 September 1, 2026 US$ 400,000 US$ 400,000 The work commitment for September 2022 is a firm commitment. Work completed that exceeds the minimum requirement for a given year will be credited to the Company’s favour and credited to subsequent years. The work commitment terminates when US $1,800,000 has been expended on the property. d. Miller Project, Nevada, United States On December 17, 2020, the Company signed a Letter of Intent (the “Miller LOI”) with Shea Clark Smith and Gregory B. Maynard (“Smith and Maynard”). The Miller LOI contemplates that the agreement will be a lease with option to purchase mining claims (the “Miller Lease”) located on the Carlin Trend in Elko County, Nevada (the “Miller Project”). On February 1, 2021 pursuant to the Miller LOI, the Company entered into a definitive agreement with Smith and Maynard through Austin NV. The Miller Project was recommended to the Company by Bull Mountain Resources, LLC (“BMR”), and the Company will be required to make agent payments per the BMR Agreement outlined in Note 7. 4. EXPLORATION AND EVALUATION ASSETS, continued d. Miller Project, Nevada, United States, continued Under the terms of the agreement, the Miller Lease is for a term of 35 years , with the following work commitments: - a firm commitment to drill 2,000 metres on the Miller Project within 18 months of the date the Company’s shares are listed on a stock exchange in either Canada or the United States (the “Listing Date”); and - a requirement to drill an additional 3,000 metres to be drilled within 36 months after the Listing Date to maintain the Miller Lease at the Company’s discretion. Smith and Maynard will retain a 2% Net Smelter Return (“NSR”) royalty on production from within an area of influence around the Miller Project. 1% of the NSR can be purchased by the Company for US $2,000,000 , reducing the royalty to 1% . If the Company options or purchases claims within the area of influence from third parties, the royalty payable to Smith and Maynard on those optioned or purchased claims will be reduced to 0.5% NSR. The Company is also required to make the following annual lease payments: Within 5 days of signing the lease US$ 50,000 (paid) 5,000 Company shares (issued) February 1, 2022 US$ 25,000 (subsequently paid) February 1, 2023 US$ 25,000 February 1, 2024 and each year thereafter US $30,000 until a total of US $500,000 has been paid Pursuant to the agreement, the Company will also be responsible for paying the annual claim maintenance fees and has staked additional claims to close gaps among the existing claim groups. Austin NV has the option to purchase the Miller lease outright at any time for US $500,000 , which amount shall be reduced by the cumulative total of the lease payments previously paid. The Miller Project consists of 117 claims in the original lease agreement, and an additional 164 claims which were staked in January of 2021 for a total of 281 unpatented lode mining claims covering approximately 23.5 km 2 . Although the Company has filed the required documentation with the BLM and county as required, there is currently a dispute on the ownership of 134 of the newly staked claims and on 36 of the original claims. The Company believes it is probable that a future benefit will flow to the Company, and as at December 31, 2021, the Company has capitalized US $88,888 of expenditures relating to their acquisition. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT | ||
PROPERTY AND EQUIPMENT | 10. PROPERTY AND EQUIPMENT Computer equipment Net book value - December 31, 2020 $ 2,564 Depreciation (780) Movement in foreign exchange 19 Net book value - December 31, 2021 1,803 Depreciation (527) Movement in foreign exchange (95) Net book value - December 31, 2022 1,181 | 5. FIXED ASSETS Computer Equipment $ Balance April 21, 2020 — Additions 3,841 Depreciation (576) Balance December 31, 2020 3,265 Depreciation (980) Balance December 31, 2021 2,285 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 11. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, December 31, 2022 2021 Trade payables $ 64,600 $ 38,740 Accrued liabilities 33,225 22,033 $ 97,825 $ 60,773 |
SHARE CAPITAL AND OTHER RESERVE
SHARE CAPITAL AND OTHER RESERVES | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE CAPITAL AND OTHER RESERVES | ||
SHARE CAPITAL AND OTHER RESERVES | 12. SHARE CAPITAL AND OTHER RESERVES (a) Share capital At December 31, 2022, the authorized share capital of the Company consisted of an unlimited number of common shares without par value and an unlimited number of preferred shares without par value. On May 6, 2022, the Company issued 3,754,750 shares at $4.00 pursuant to the closing of the Company’s IPO for gross proceeds of $15,019,000 . Total share issuance costs were $1,165,580 . The Company also issued 262,833 underwriter warrants relating to the IPO (refer to Note 12d). On February 2, 2021, the Company issued 5,000 common shares with a fair value in the amount of $11,702 related to obligations under a mineral lease agreement. (b) Other reserves The Company’s other reserves consisted of the following: December 31, December 31, 2022 2021 Other reserve - Share options $ 1,781,096 $ 1,624,053 Other reserve - Warrants 263,596 — $ 2,044,692 $ 1,624,053 (c) Share options The Company has adopted an incentive share option plan which provides that the Board of Directors of the Company may from time to time, in their discretion, grant to its directors, officers, employees and consultants of the Company, non-transferable options to purchase common shares, provided that the number of common shares reserved for issue does not exceed 10% of the number of then outstanding common shares. The term of each share option is set by the Board of Directors at the time of grant but cannot exceed a maximum term of ten years from the date of grant. The exercise price of each share option is set by the Board of Directors at the time of grant but cannot be less than the then market price of common shares. The following table summarizes the changes in share options for the year ended December 31: 2022 2021 Weighted Weighted Number of average Number of average share options exercise price share options exercise price Outstanding, January 1, 716,663 $ 2.37 716,663 $ 2.36 Granted 460,003 0.92 — — Expired (83,333) 2.36 — — Outstanding, December 31, 1,093,333 $ 1.67 716,663 $ 2.37 The following table summarizes information about share options outstanding and exercisable at December 31, 2022: Share options outstanding Share options exercisable Number of Weighted Number of Weighted share options average years share options average Exercise prices outstanding to expiry exercisable exercise price $0.50 - $1.00 460,003 4.82 114,994 0.92 $2.01 - $2.50 633,330 7.20 633,330 $ 2.22 1,093,333 6.20 748,324 $ 2.02 The total share-based compensation expense for the year ended December 31, 2022 was $ 157,043 (2021 – nil ) of which $ 130,870 has been expensed in the statement of loss and comprehensive loss and $26,173 has been capitalized to E&E assets. 12. SHARE CAPITAL AND OTHER RESERVES (Continued) The following are the weighted average assumptions used to estimate the fair value of share options granted for the years ended December 31, 2022 and 2021 using the Black-Scholes pricing model: For the year ended December 31, December 31, 2022 2021 Expected life 5.00 years N/A Expected volatility 143.18 % N/A Risk-free interest rate 4.09 % N/A Expected dividend yield — N/A Forfeiture rate — N/A Option pricing models require the input of subjective assumptions including the expected price volatility and expected share option life. Changes in these assumptions would have a significant impact on the fair value calculation. (d) Warrants The following table summarizes the changes in warrants for the year ended December 31: 2022 2021 Number of Warrant Number of Warrant warrants reserve warrants reserve Outstanding, January 1, — $ — — $ — Transactions during the year: Warrants issued - IPO 262,833 238,217 — — Warrants issued - consultants 100,000 25,379 — — Outstanding, December 31, 362,833 $ 263,596 — $ — On May 6, 2022, the Company issued 262,833 warrants to the underwriters in connection with the IPO. The warrants are exercisable at a price of $4.40 or on a cashless basis for shares at the option of the holder. The underwriter warrants expire on November 6, 2023. At issuance, the underwriter warrants were valued at $238,217 using the Black-Scholes pricing model and were recorded as a share issuance cost. On November 1, 2022, the Company issued 100,000 warrants to an investor relations consultant. The warrants vest over tranches at an exercise price of $0.81 . The warrants expire on November 1, 2025. The total share-based compensation expense for the year ended December 31, 2022 was $26,480 which was expensed in the statement of loss and comprehensive loss. The following are the weighted average assumptions used to estimate the fair value of warrants issued for the years ended December 31, 2022 and 2021 using the Black-Scholes pricing model: For the year ended December 31, December 31, 2022 2021 Expected life 1.91 years N/A Expected volatility 109.94 % N/A Risk-free interest rate 1.42 % N/A Expected dividend yield — N/A Forfeiture rate — N/A Warrant pricing models require the input of subjective assumptions including the expected price volatility and expected share option life. Changes in these assumptions would have a significant impact on the fair value calculation. | 6. SHARE CAPITAL AND OPTION RESERVES On October 25, 2021, the Company conducted a three to one stock consolidation. All share capital figures disclosed reflect the post-consolidated amounts. a. Authorized and issued share capital At December 31, 2021, the Company’s authorized share capital consisted of an unlimited number of common shares without par value and an unlimited number of preferred shares without par value. During the year ended December 31, 2021, the Company issued the following shares: - On February 2, 2021, the Company issued 5,000 common shares pursuant to a mineral lease agreement. See note 4d. During the period ended December 31, 2020, the Company issued the following shares: - In April 2020, the Company issued 6,666,668 common shares at a price of US $0.015 per common share for gross proceeds of US $100,000 . - In June 2020, the Company completed non-brokered private placements consisting of 1,083,333 common shares at a price of US $0.30 per common share for gross proceeds of US $325,000 , 861,999 common shares at a price of US $0.75 for gross proceeds of US $646,500 , and 133,333 common shares at a price of $1.05 for gross proceeds of $140,000 . - On June 19, 2020, the Company issued 33,333 common shares pursuant to a mineral lease agreement. See note 4b. - In July 2020, the Company completed non-brokered private placements consisting of 66,667 common shares at a price of US $0.75 per common share for gross proceeds of US $50,000 , and 666,667 common shares at a price of $3.00 per common share for gross proceeds of $2,000,000 . b. Stock options The Company has adopted a stock option plan (the “Plan”) for its employees, directors, officers and consultants. The plan provides for the issuance of options to acquire up to a total of 10% of the issued and outstanding common shares of the Company. The exercise price of each option shall not be less than the minimum prescribed amount allowed under the TSX Venture Exchange. The options can be granted for a maximum term of 10 years with vesting provisions determined by the Company. For the period ended December 31, 2021, the Company granted nil (2020: 716,663 ) stock options at an exercise price of $nil (2020: $3.00 ) to employees, directors, and consultants for a term of 10 years and vesting at the date of grant. For the period ended December 31, 2021, the share-based compensation of $nil (2020: $1,807,450 ) was recognized in comprehensive loss. In addition, share-based compensation of $nil (2020: $293,100 ) was capitalized to mineral interests. Number of share Weighted average options exercise price $ Balance April 21, 2020 — — Granted 716,663 3.00 Outstanding as at December 31, 2020 716,663 3.00 Outstanding as at December 31, 2021 716,663 3.00 The weighted average fair value of stock options granted in 2020 was to be estimated based on the Black-Scholes option pricing model using a share price of $3.00 , volatility of 141.595% , risk-free interest rate of 1.74% , expected life of 10 years and expected dividend yield of $nil . 6. SHARE CAPITAL AND OPTION RESERVES, continued b. Stock options, continued At December 31, 2021, the following share options were outstanding and exercisable: Number of share Exercise price per options share Expiry Date $ $ 716,663 3.00 December 2, 2030 Number of share options December 31, 2021 Weighted average exercise price for exercisable options $ 3.00 Weighted average share price for options exercised — Weighted average years to expiry for exercisable options 8.93 years |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
RELATED PARTY TRANSACTIONS AND BALANCES | 13. RELATED PARTY TRANSACTIONS AND BALANCES Key management includes the Company’s directors and officers including its President, Corporate Secretary and Chief Financial Officer (“CFO”). Directors and key management compensation: For the year ended December 31, December 31, 2022 2021 Management and consulting fees $ 559,591 $ 12,206 Share-based compensation 136,148 — Directors’ fees 44,380 — $ 740,119 $ 12,206 For the year ended December 31, 2022, the Company’s officers incurred $50,359 (2021 – $11,266 ) of administration expenses in the normal course of business on behalf of the Company. For the year ended December 31, 2022, the Company incurred $21,149 (2021 – nil ) with P2 Gold Inc., a related party of the Company, under a CFO shared-services agreement. These expenditures were expensed under management and consulting fees in the statement of loss and comprehensive loss. As at December 31, 2022, accounts payable and accrued liabilities include $7,568 (2021 – nil ) owed to related parties of the Company for transactions incurred in the normal course of business. The Company entered into a joint venture agreement with Pediment, a subsidiary of NGE, for the Kelly Creek Project (refer to Note 9) and owns 2,231,000 common shares of NGE (refer to Note 8). The President of the Company served as the non-executive chairman and director of NGE until October 1, 2022. As of December 31, 2022, the Corporate Secretary and a director of the Company were directors of NGE. | 8. RELATED PARTY TRANSACTIONS AND BALANCES The Company’s related parties include key management personnel and directors. Key management personnel include those persons having authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. The Company has determined that key management personnel consists of members of the Board and corporate officers. Compensation 2021 2020 $ $ Management fees (i) 6,000 2,000 Accounting fees (ii) 9,300 — Share-based payments (iii) — 1,807,450 15,300 1,809,450 (i) Management fees are compensation paid to an officer of the Company. (ii) Accounting fees are fees paid to the CFO for preparation of the financial statements. (iii) Share-based payment is the fair value of options granted and vested. During the year ending December 31, 2021, the President of the Company incurred $8,652 (2020: $8,909 ) for administration expenses on behalf of the Company. As at December 31, 2021, $nil (2020: $4,929 ) was payable to the President. The amount due is non-interest bearing, unsecured and due on demand. During the year ending December 31, 2021, the Corporate Secretary of the Company incurred $5,470 (2020: $1,519 ) for administration expenses on behalf of the Company. As at December 31, 2021, $nil (2020: $nil ) was payable to the Corporate Secretary. During the period ending December 31, 2020, the Company entered into a private placement and letter of intent with Nevada Exploration Inc., a company of which the President of the Company also serves as a director and non-executive chairman. The Company also entered into an Option to Joint Venture on a project owned by a subsidiary of Nevada Exploration Inc. See notes 3 and 4a. These transactions occurred in the normal course of operations and are measured at their exchange amounts, being the amounts agreed upon by the related parties. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
SUPPLEMENTAL CASH FLOW INFORMATION | 14. SUPPLEMENTAL CASH FLOW INFORMATION The net change in non-cash working capital items included in E&E assets were as follows: For the year ended December 31, December 31, 2022 2021 Accounts payable and accrued liabilities $ (37,130) $ — Share-based compensation 26,173 — Common shares issued — 11,702 $ (10,957) $ 11,702 |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
FINANCIAL RISK MANAGEMENT | ||
FINANCIAL RISK MANAGEMENT | 15. FINANCIAL RISK MANAGEMENT The Company has exposure to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk from its use of financial instruments. This note presents information about the Company’s exposure to each of these risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. Risk management is the responsibility of management and is carried out under the oversight of and policies approved by the Board of Directors. Material risks are monitored and are regularly discussed with the Audit Committee and the Board of Directors. (a) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s cash flows or value of its financial instruments. 15. FINANCIAL RISK MANAGEMENT (Continued) (i) Currency risk The Company is subject to currency risk on financial instruments that are denominated in currencies that are not the same as the functional currency of the entity that holds them. Exchange gains and losses would impact the statement of loss and comprehensive loss. The Company does not use any hedging instruments to reduce exposure to fluctuations in foreign currency rates. The Company is exposed to currency risk through cash and cash equivalents, receivables and other, marketable securities and accounts payable and accrued liabilities held in the parent entity which are denominated in CAD. The following table shows the impact on pre-tax loss of a 10% change in the USD:CAD exchange rate on financial assets and liabilities denominated in CAD, as of December 31, 2022, with all other variables held constant: Impact of currency rate change on pre-tax loss 10% increase 10% decrease Cash and cash equivalents $ 11,629 $ (11,629) Receivables and other 16,098 (16,098) Marketable securities 1,647 (1,647) Accounts payable and accrued liabilities (5,234) 5,234 (ii) Interest rate risk The Company is subject to interest rate risk with respect to its investments in cash and cash equivalents and short-term investments. The Company’s current policy is to invest cash at variable and fixed rates of interest with cash reserves to be maintained in cash and cash equivalents in order to maintain liquidity. Fluctuations in interest rates when cash and cash equivalents and short-term investments mature impact interest and finance income earned. The impact on pre-tax loss of a 1% change in variable interest rates on financial assets and liabilities as of December 31, 2022, with all other variables held constant, would be nominal. (b) Credit risk Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its financial assets including cash and cash equivalents and short-term investments. The carrying amount of financial assets represents the maximum credit exposure: December 31, December 31, 2022 2021 Cash and cash equivalents $ 630,623 $ 1,094,550 Short-term investments 11,649,079 — $ 12,279,702 $ 1,094,550 The Company mitigates its exposure to credit risk on financial assets through investing its cash and cash equivalents and short-term investments with high-credit quality financial institutions. Management believes there is a nominal expected credit loss associated with its financial assets. (c) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. 15. FINANCIAL RISK MANAGEMENT (Continued) The Company has issued surety bonds to support future decommissioning and restoration provisions. Contractual undiscounted cash flow requirements for contractual obligations as at December 31, 2022 are as follows: Carrying Contractual Due within Due within Due within amount cash flows 1 year 2 years 3 years Accounts payable and accrued liabilities $ 97,825 $ 97,825 $ 97,825 $ — $ — $ 97,825 $ 97,825 $ 97,825 $ — $ — (d) Capital management The Company’s objectives in managing capital are to safeguard the ability to continue as a going concern and provide financial capacity to meet its strategic objectives. Management monitors the amount of cash and cash equivalents and equity in the capital structure and adjusts the capital structure, as necessary, to continue as a going concern and to support the acquisition, exploration and development of its mineral projects. The capital structure of the Company consists of equity attributable to common shareholders, comprising of issued share capital, other reserves, AOCI and deficit. To maintain or adjust the capital structure, the Company may issue new shares, issue new debt, acquire or dispose of mineral projects to facilitate the management of its capital requirements. The Company prepares annual expenditure budgets that are reviewed by the Board of Directors. Forecasts are regularly reviewed and updated for changes in circumstances so that appropriate capital allocation, investment and financing decisions are made for the Company. (e) Fair value estimation The Company’s financial assets and liabilities are initially measured and recognized according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy are as follows: Level 1: Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data. The Company’s financial instruments consisting of cash and cash equivalents, short-term investments and accounts payable and accrued liabilities approximate their fair value due to the short-term maturity of these financial instruments. Marketable securities are fair valued at each reporting period using NGE’s share price on the TSX Venture Exchange and assumptions used in the Black-Scholes pricing model. 15. FINANCIAL RISK MANAGEMENT (Continued) The following tables present the Company’s financial assets and liabilities by level within the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. As at December 31, 2022 Carrying value Fair value FVTPL Amortized cost Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ — $ 630,623 $ — $ — $ — Short-term investments — 11,649,079 — — — Marketable securities 16,473 — 16,472 — 1 $ 16,473 $ 12,279,702 $ 16,472 $ — $ 1 As at December 31, 2021 Carrying value Fair value FVTPL Amortized Level 1 Level 2 Level 3 cost Financial assets Cash and cash equivalents $ — $ 1,094,550 $ — $ — $ — Marketable securities 196,847 — 193,572 — 3,275 $ 196,847 $ 1,094,550 $ 193,572 $ — $ 3,275 | 9. FINANCIAL INSTRUMENT RISK The Company’s financial instruments consist of cash, marketable securities, accounts payable and accrued liabilities. The fair values of these financial instruments approximate their carrying values, other than cash and marketable securities which are carried at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following summarizes fair value hierarchy under which the Company’s financial instruments are valued: - Level 1 – fair values based on unadjusted quoted prices in active markets for identical assets or liabilities; - Level 2 – fair values based on inputs that are observable for the asset or liability, either directly or indirectly; and - Level 3 – fair values based on inputs for the asset or liability that are not based on observable market data. The following table sets forth the Company’s financial assets measured at fair value on a recurring basis: Fair Value Measurements Using Balance as at Level 1 Level 2 Level 3 December 31, 2021 $ $ $ $ Assets Cash 1,387,670 — — 1,387,670 Marketable securities 245,410 — 4,152 249,562 Total assets measured at fair value 1,633,880 — 4,152 1,637,232 Fair Value Measurements Using Balance as at Level 1 Level 2 Level 3 December 31, 2020 $ $ $ $ Assets Cash 2,421,796 — — 2,421,796 Marketable securities 375,000 — 51,109 426,109 Total assets measured at fair value 2,796,796 — 51,109 2,847,905 The Company examines the various financial instrument risks to which it is exposed and assesses any impact and likelihood of those risks. The Company’s risk exposures and their corresponding impact on the Company’s consolidated financial instruments as at December 31, 2021 and December 31, 2020 are summarized below. Credit Risk The Company’s primary exposure to credit risk is the risk of cash, amounting to $1,387,670 at December 31, 2021 (2020: $2,421,796 ). As the Company’s policy is to limit cash holdings to instruments issued by major Canadian banks, the credit risk is considered by management to be negligible. As at December 31, 2021, the Company had a receivable balance of $11,430 (2020: $3,133 ), which primarily relates to GST receivable from the Federal Government of Canada. Liquidity Risk Liquidity risk is the risk that the Company will not be able to pay financial instrument liabilities as they come due. The Company’s only liquidity risk from financial instruments is its need to meet operating accounts payable requirements. The Company has maintained sufficient current asset balances to meet these needs at December 31, 2021. Carrying Contractual Within Within Within Amount Cash Flows 1 year 2 years 3 years $ $ $ $ $ Accounts payable and accrued liabilities 77,048 77,048 77,048 — — Total as at December 31, 2021 77,408 77,048 77,048 — — Foreign Exchange Risk Foreign exchange risk is the risk arising from changes in foreign currency fluctuations. The Company does not use any derivative instruments to reduce its exposure to fluctuations in foreign currency rates. The Company operates projects in the United States. As a result, a portion of the Company’s cash is denominated in US dollars and is therefore subject to fluctuation in exchange rates. As at December 31, 2021, a 10% change in the exchange rate between the Canadian and US dollar would increase (decrease) loss and comprehensive loss by $2,535 (2020: $66,935 ). |
TAXATION
TAXATION | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
TAXATION | ||
TAXATION | 16. TAXATION (a) Deferred income taxes The tax effects of temporary differences between the amounts recorded in the Company’s accounts and the corresponding amounts as computed for income tax purposes give rise to deferred income taxes as follows: For the year ended December 31, December 31, 2022 2021 Tax loss carry forwards $ 332,184 $ 99,672 Share issuance costs 288,230 — Marketable securities and other 74,568 41,908 Deferred income taxes not recognized (694,982) (141,580) $ — $ — The Company has tax losses in Canada of approximately $1,191,205 (2021 – $375,315 ) expiring in various amounts from 2040 to 2042. The other temporary differences do not expire under current legislation. A deferred tax asset has not been recognized in respect of the temporary differences, as it is not probable that sufficient future taxable earnings will be available in the periods when deductions from such potential assets will be realized. (b) Income tax expense (recovery) The provision for income taxes differs from the amount calculated using the Canadian federal and provincial statutory income tax rates of 27.0% (2021 – 27.0% ) as follows: For the year ended December 31, December 31, 2022 2021 Expected income tax recovery $ (288,466) $ (108,298) Share issuance costs (298,176) — Impact of difference in tax rates and other (10,670) 21,425 Share-based compensation 43,910 — Deferred income taxes not recognized 553,402 86,873 $ — $ — For the Company’s subsidiary, the USA statutory income tax rate is 21.0% (2021 – 21.0% ) and the Nevada state statutory income tax rate is nil (2021 – nil ). | 11. INCOME TAXES The Company accounts for income taxes using the taxes payable method. As a result, the Company’s income tax expense varies from the amount that would otherwise result from the application of the statutory income tax rates as set out below: December 31, December 31, 2021 2020 $ $ Net income (loss) before income taxes (502,779) (2,070,249) Income tax recovery based on effective rate of 27% (2020 – 27% ) (135,750) (551,850) Permanent differences and others 26,856 479,127 Change in deferred tax assets not recognized 108,894 72,723 Net deferred tax (recovery) — — Deferred income tax Deferred income tax assets have not been recognized in respect of the following deductible temporary differences: December 31, December 31, 2021 2020 $ $ Non-capital loss carry-forwards 128,486 53,142 Marketable securities and others 53,131 19,581 Deferred tax assets not recognized (181,617) (72,723) — — Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Company can use the benefits. The Company has non-capital tax losses totaling $475,875 , which commenced expiring in 2041. The other temporary differences do not expire under current legislation. |
COMMITMENTS
COMMITMENTS | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
COMMITMENTS | ||
COMMITMENTS | 17. COMMITMENTS The Company executed an introductory agent agreement with BMR (the “BMR Agreement”). Under the BMR Agreement, should a mineral property recommended by BMR be acquired by the Company, the Company shall pay an introductory agent fee. The BMR Agreement is currently in effect for the Miller Project, as of February 1, 2021, with the introductory agent fee commitment as follows: Within 15 days of acquisition $ 5,000 Paid 6 months after acquisition $ 5,000 Paid 12 months after acquisition $ 5,000 Paid 18 months after acquisition $ 5,000 Paid 24 months after acquisition $ 7,500 Paid (1) 30 months after acquisition $ 7,500 36 months after acquisition $ 10,000 42 months after acquisition $ 10,000 48 months after acquisition and every six months thereafter $ 15,000 (1) The amount was paid subsequent to December 31, 2022. If commercial production is achieved on a property recommended by BMR, the Company shall pay a 0.5% net smelter return royalty on all mineral interests acquired within the area of influence of the mineral property. Introductory agent fees and net smelter return royalty payments totaling $1,000,000 paid by the Company will reduce the net smelter return royalty by 50% to 0.25% . | 7. COMMITMENTS Introductory Agent Agreement The Company has signed an introductory agent agreement (the “BMR Agreement”) with Bull Mountain Resources, LLC (“BMR”). Under the BMR Agreement, should a mineral property recommended by BMR be acquired by the Company, then the Company shall pay an introductory agent fee as follows: Within 15 days of acquisition US$ 5,000 6 months after acquisition US$ 5,000 12 months after acquisition US$ 5,000 18 months after acquisition US$ 5,000 24 months after acquisition US$ 7,500 30 months after acquisition US$ 7,500 36 months after acquisition US$ 10,000 42 months after acquisition US$ 10,000 48 months after acquisition US$ 15,000 Every 6 months thereafter US$ 15,000 If commercial production is achieved on one or more mineral properties recommended by BMR and acquired or partially acquired by the Company, then the Company shall pay BMR a 0.5% net smelter returns royalty on all mineral interests acquired within the area of influence of the mineral property. For each recommended mineral property acquired by the Company under the terms of the BMR Agreement, introductory agent fees and net smelter return royalty payments totaling US$ 1,000,000 paid by the Company to BMR shall reduce the net smelter return royalty by 50% to a 0.25% net smelter return royalty. Other Commitments The Company also has payment obligations relating to the Kelly Creek, Fourmile Basin, Lone Mountain and Miller projects. See notes 4a, 4b, 4c and 4d. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SEGMENT INFORMATION | ||
SEGMENT INFORMATION | 18. SEGMENTED INFORMATION Exploration and development of mineral projects is considered the Company’s single business segment. All of the Company’s E&E assets are located in the USA. | 10. SEGMENT INFORMATION The Company operates in one business segment being the exploration of mineral properties. The Company’s mineral property assets are all located in the United States. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of consolidation | (a) Basis of consolidation These consolidated financial statements include the financial statements of the Company and the entity controlled by the Company, its subsidiary, listed in the following table: Place of Proportion of Name of subsidiary incorporation ownership interest Principal activity Austin American Corporation (“Austin NV”) Nevada, USA 100 % Holds interests in exploration projects 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give the Company the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50 % of the voting rights or currently exercisable potential voting rights of a subsidiary’s share capital. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. | b. Basis of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Austin American Corporation (“Austin NV”), from the Company’s incorporation on April 21, 2020. All significant intercompany accounts and transactions between the Company and its subsidiary have been eliminated upon consolidation. Proportion of Place of Ownership Name of Subsidiary Incorporation Interest Principal Activity Austin American Corporation Nevada, United States 100 % Exploration company |
Foreign currency translation | (b) Foreign currency translation Functional currency Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). For the parent entity, with the completion of the IPO on the NYSE American stock exchange, future equity financings are expected to generate proceeds denominated in United States dollars (“USD”). In addition, E&E expenditures and administrative costs incurred to conduct business activities are primarily denominated in USD. As a result of these changes in underlying transactions, events and circumstances, the functional currency of the parent entity was reassessed. The functional currency of the parent entity changed from the Canadian dollar (“CAD” or “C$”) to the USD commencing on December 31, 2022. The change in functional currency was accounted for on a prospective basis, with no impact of this change on prior year comparative information. The functional currency of the Company’s subsidiary remains the USD. Presentation currency On December 31, 2022, the Company elected to change its presentation currency from CAD to USD. The change in presentation currency is to better reflect the Company’s business activities and to improve investors’ ability to compare the Company’s financial results with other USA listed businesses in the mining industry. The Company applied the change to USD presentation currency retrospectively and restated the comparative financial information as if the new presentation currency had always been the Company’s presentation currency. From December 31, 2022, the USD presentation currency is consistent with the functional currency of the Company. For periods prior to December 31, 2022, the statements of financial position for each period presented have been translated from the CAD functional currency to the USD presentation currency at the rate of exchange prevailing at the respective financial position date with the exception of equity items which have been translated at accumulated historical rates from the Company’s date of incorporation in 2020. The statements of loss and comprehensive loss were translated at the average exchange rates for the reporting period, or at the exchange rate prevailing at the date of transactions. Exchange differences arising on translation from the CAD functional currency to the USD presentation currency prior to the change in functional currency to USD, have been recognized in other comprehensive income (loss) and accumulated as a separate component of equity. Transactions and balances Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses result from the settlement of foreign currency transactions and from the translation of monetary assets and liabilities denominated in currencies other than an entity’s functional currency. These gains (losses) are recognized in the statement of loss and comprehensive loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the date of the initial transactions. | g. Foreign currencies Transactions in currencies other than the functional currency are recorded at the rate of exchange prevailing on the dates of transactions. Monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at each reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign currency translation differences are recognized in profit or loss, except for differences on the retranslation of fair value through other comprehensive income (FVTOCI) instruments, which are recognized in other comprehensive (income)/ loss. |
Financial instruments | (c) Financial instruments Financial instruments – Classification Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or fair value through other comprehensive income (“FVOCI”). The classification depends on the Company’s business model for managing the financial assets and the contractual terms which give rise to the cash flows. For assets measured at fair value, gains (losses) will either be recorded in earnings (loss) or other comprehensive income (“OCI”). For investments in debt instruments, this will depend on the business model for which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI. The Company reclassifies debt investments when, and only when, its business model for managing those assets changes. Financial instruments – Measurement At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in the statement of loss and comprehensive loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments: ● Amortized cost – Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method. ● FVOCI – Assets that are held for collection of contractual cash flows and for selling the financial assets, where those cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance expense using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange gain (loss) and impairment expenses in other expenses. ● FVTPL – Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of loss and comprehensive loss within other gains (losses) in the period in which it arises. Changes in the fair value of financial assets at FVTPL are recognized in gain (loss) on change in fair value of financial instruments in the statement of loss and comprehensive loss as applicable. Financial instruments - Impairment An expected credit loss (“ECL”) impairment model applies which requires a loss allowance to be recognized based on ECLs. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in earnings (loss) for the period. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through earnings (loss) to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Financial instruments - Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of loss and comprehensive loss. Cash and cash equivalents Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Cash and cash equivalents are classified at amortized cost. Interest and finance income is recognized by applying the effective interest rate method. Short-term investments Short-term investments comprise term deposits and redeemable short-term investment certificates (“RSTICs”) held at major financial institutions with an original maturity date between three and twelve months. Short-term investments are classified at amortized cost. Interest and finance income is recognized by applying the effective interest rate method. Marketable securities Marketable securities comprise of common shares of publicly traded companies. Marketable securities are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Changes in fair value at each reporting date are included in the statement of loss and comprehensive loss as gain (loss) on marketable securities. Accounts payable and accrued liabilities Accounts payable and accrued liabilities are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method. Derivative liabilities Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date. Changes in fair value at each reporting date are included in the statement of loss and comprehensive loss as gain (loss) on change in fair value of derivative liability. | d. Financial instruments Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives). Measurement Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. The Company’s accounts payables are classified at amortized cost. Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in consolidated statements of comprehensive income (loss). Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in profit or loss. The Company’s cash and marketable securities are classified as FVTPL. Financial assets at FVTOCI are initially recorded at fair value adjusted for transaction costs. Dividends are recognized as income in the consolidated statements of comprehensive income (loss) unless the dividend clearly represents a recovery of part of the cost of the investment. Gains or losses recognized on the sale of FVOTCI investment are recognized in other comprehensive income (loss) and are never reclassified to profit or loss. Impairment An ‘expected credit loss’ impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive income (loss). |
Property and equipment | (d) Property and equipment Property and equipment is measured at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated future cost of dismantling and removing the asset at the end of its useful life. The purchase price or construction cost is the fair value of consideration to acquire the asset. Depreciation of property and equipment commences when the asset has been fully commissioned and is available for its intended use. Depreciation is calculated using declining balance rates ranging from 15% to 30% per annum or the straight-line method to allocate cost over the estimated useful lives. Depreciation on assets that are directly related to E&E assets are allocated to that E&E asset. Depreciation methods and estimated useful lives and residual values are reviewed annually and when facts and circumstances indicate that a review should be performed. Changes in estimates are accounted for prospectively. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain (loss) arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the statement of loss and comprehensive loss. | f. Property, plant and equipment Property, plant and equipment, reported herein as fixed assets, are carried at cost, less accumulated amortization and accumulated impairment losses. Cost comprises the fair value of consideration given to acquire an asset and includes the direct expenditures associated with bringing the asset to the location and condition necessary for putting it into use along with the future cost of dismantling and removing the asset. When parts of an item of fixed assets have different useful lives, they are accounted for as separate items (major components) of fixed assets. Amortization is calculated over the useful life of the asset at rates ranging from 15% to 30% per annum once the asset is available for use. Amortization charges on assets that are directly related to mineral properties are allocated to that mineral property. |
Mineral properties | (e) Mineral properties Mineral properties are measured at cost less accumulated depletion and accumulated impairment losses. Mineral properties include the fair value attributable to mineral reserves and mineral resources acquired in a business combination or asset acquisition, mine development costs and previously capitalized E&E expenditures. Upon commencement of production, a mineral property is depleted using the unit-of-production method. Unit-of-production depletion rates are determined using mineral units mined over the estimated proven and probable mineral reserves of the mine. | |
E&E assets | (f) E&E assets All E&E expenditures are capitalized, including the costs of acquiring exploration stage properties, except for E&E expenditures incurred before the Company has obtained legal rights to explore an area, which are expensed. Exploration expenditures are costs incurred in the initial search for mineral deposits with economic potential or in the process of obtaining more information about existing mineral deposits. Exploration expenditures typically include costs associated with prospecting, sampling, mapping, drilling and other work involved in searching for Mineral Resources, as defined by Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Evaluation expenditures are the costs incurred to establish the technical feasibility and commercial viability of developing mineral deposits identified through exploration activities, business combinations or asset acquisitions. Evaluation expenditures include the cost of: (i) further defining the volume and grade of deposits through drilling of core samples and other sampling techniques, trenching and sampling activities in an ore body or other forms or data acquisition; (ii) determining the optimal methods of extraction and metallurgical and treatment processes; (iii) studies related to surveying, transportation and infrastructure requirements; (iv) permitting activities; and (v) economic evaluations to determine whether development or mineralized material is commercially justified including preliminary economic assessments (“PEA”), pre-feasibility and final feasibility studies. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Once the technical feasibility and commercial viability of the extraction of mineral reserves or mineral resources from a particular mineral property has been determined, expenditures are tested for impairment and reclassified to mineral properties. The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, including: ● The extent to which mineral reserves and mineral resources as defined by NI 43-101 have been identified through a feasibility study or similar document; ● The results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study; ● The status of environmental permits; and ● The status of mining leases or permits. | h. Mineral property interests Expenditures on mineral exploration or evaluation incurred in respect of a property before the acquisition of a license to explore are expensed as incurred, to general exploration. Once the legal rights to explore a specific area have been obtained, expenditures on exploration and evaluation activities are capitalized as exploration and evaluation assets. Mineral property acquisition costs are included in exploration and evaluation and include any cash consideration and advance royalties paid, and the fair market value of shares issued, if any, on the acquisition of the mineral property interest. Properties acquired under option agreements, whereby payments are made at the sole discretion of the Company, are recorded in the accounts when the payments are made. Exploration expenditures relate to the initial search for deposits with economic potential and to detailed assessments of deposits or other projects that have been identified as having economic potential. All capitalized exploration and evaluation expenditures are monitored for indications of impairment. Where a potential impairment is indicated, assessments are performed for each area of interest. Once an economically viable reserve has been determined for an area and the decision to proceed with development has been approved, exploration and evaluation assets attributable to that area are first tested for impairment and then reclassified to property, plant and equipment. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers, or title may be affected by undetected defects. |
Impairment of non-financial assets | (g) Impairment of non-financial assets The carrying amounts of assets included in E&E assets and property and equipment are assessed for impairment at the end of each reporting period or whenever facts and circumstances suggest that the carrying amounts may not be recoverable. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash generating unit (“CGU”) to which the asset belongs is determined. The recoverable amount of an asset or CGU is determined as the higher of its fair value less costs of disposal and its value in use. An impairment loss exists if the asset’s or CGU’s carrying amount exceeds the recoverable amount and is recorded as an expense immediately. Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. Future cash flows are estimated using the following significant assumptions: mineral reserves and mineral resources, production profile, operating costs, capital costs, commodity prices, foreign exchange rates and discount rates. All inputs used are those that an independent market participant would consider appropriate. Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit for which estimates of future cash flows have not been adjusted. Tangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings (loss) immediately. | |
Decommissioning and restoration provision | (h) Decommissioning and restoration provision Decommissioning and restoration provisions are recognized when there is a significant disturbance to the areas in which E&E activities have occurred and when the provision can be estimated reliably. Decommissioning and restoration costs are estimated and discounted to their net present value and capitalized to the carrying amount of the related asset along with the recording of a corresponding liability, as soon as the obligation to incur such costs arises. The discount rate used to calculate the net present value is a pre-tax rate of similar maturity that reflects current market assessments of time value of money and the risks specific to the liability. Each period, the Company reviews cost estimates and other assumptions used in the valuation of the provision to reflect events, changes in circumstances and new information available. The liability is adjusted each reporting period for the unwinding of the discount, changes to the current market-based discount rate and for the amount or timing of the underlying cash flows needed to settle the provision. | j. Decommissioning obligations The Company recognizes liabilities for statutory, contractual, legal or constructive obligations associated with the retirement of property, plant and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. Initially, a provision for a decommissioning obligation is recognized at its net present value in the period in which it is incurred, using a discounted cash flow technique with market-based risk-free discount rates and estimates of the timing and amount of the settlement of the obligation. Upon initial recognition of the liability, the corresponding decommissioning cost is added to the carrying amount of the related asset. Following initial recognition of the decommissioning obligation, the carrying amount of the liability is increased for the passage of time and adjusted for changes to significant estimates including the current discount rate, the amount or timing of the underlying cash flows needed to settle the obligation and the requirements of the relevant legal and regulatory framework. Subsequent changes in the provisions resulting from new disturbance, updated cost estimates, changes to estimated lives of operations and revisions to discount rates are also capitalized to the related asset. Amounts capitalized are depreciated over the lives of the assets to which they relate. The amortization or unwinding of the discount applied in establishing the net present value of provisions is charged to expense and is included within finance costs in the consolidated statement of comprehensive loss. |
Income taxes | (i) Income taxes Income tax is recognized in the statement of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable earnings. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates at the end of the reporting year applicable to the year of expected realization. A deferred tax asset is recognized only to the extent that it is probable that future taxable earnings will be available against which the asset can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, when they relate to income taxes levied by the same taxation authority and when the Company intends to settle its current tax assets and liabilities on a net basis. | l. Taxation Income tax expense is comprised of current and deferred tax. Current tax and deferred taxes are recognized in the consolidated statements of comprehensive income (loss) except to the extent that they relate to items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date. Deferred tax is recognized in respect of unused tax losses and credits, as well as temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on enacted or substantively enacted laws at the reporting date. The Company computes the provision for deferred income taxes under the liability method. A deferred tax asset is recognized for unused tax losses, tax credits, and deductible temporary differences, only to the extent that it is probable that future taxable profits will be available against which they can be utilized. Where applicable, the probability of utilizing tax losses or credits is evaluated by considering risks relevant to future cash flows and the expiry dates after which these losses or credits can no longer be utilized. Deferred tax is not recognized for the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries, associates and joint arrangements to the extent that it is probable that they will not reverse in the foreseeable future. The Company is subject to assessments by various taxation authorities, who may interpret tax legislation differently from the Company. The final amount of taxes to be paid depends on a number of factors, including the outcomes of audits, appeals, or negotiated settlements. Such differences are accounted for based on management’s best estimate of the probable outcome of these matters. The Company must make significant estimates and judgments in respect of its provision for income taxes and the composition and measurement of its deferred income tax assets and liabilities. The Company’s operations are, in part, subject to foreign tax laws where interpretations, regulations and legislation are complex and continually changing. As a result, there are usually some tax matters in question that may, upon resolution in the future, result in adjustments to the amount of deferred income tax assets and liabilities; those adjustments may be material. |
Share capital | (j) Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares, share options and warrants are recognized as a deduction from equity, net of any tax effects. If common shares are issued as consideration for the acquisition of a mineral project, the common shares are measured at their fair value based on the quoted share price of the Company on the date the transaction is executed. The Company applies the residual value method with respect to the measurement of common shares and warrants issued as a unit for a private placement. The residual value method first allocates value to the more easily measurable component based on fair value (i.e. common shares) and then the residual value, if any, to the less measurable component (i.e. warrants). Any value attributed to the warrants is recorded to other reserves in equity. | m. Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the more easily measurable component based on fair value and then the residual value, if any, to the less measurable component. The Company considers the fair value of common shares issued in a unit private placement to be the more easily measurable component. The balance, if any, is allocated to the attached warrants. Any value attributed to the warrants is recorded as reserves. |
Share-based payment transactions | (k) Share-based payment transactions Share options granted under the Company’s equity settled share-based option plan are measured at fair value at the date of grant and recognized as an expense with a corresponding increase to other reserves in equity. An individual is classified as an employee when the individual is an employee for legal and tax purposes (direct employee) or provides services similar to those performed by a direct employee. Equity settled share-based payment transactions with non-employees are measured at the fair value of the goods or services received. However, if the fair value cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instrument granted at the date the non-employee provides the goods or the services. Fair value is determined using the Black-Scholes option pricing model, which relies on estimates of the risk-free interest rate, expected share price volatility, future dividend payments and the expected average life of the options. The fair value determined at the grant date is recognized as an expense over the vesting period in accordance with the vesting terms and conditions (graded vesting method), with a corresponding increase to other reserves in equity. When share options are exercised, the applicable amounts of other reserves are transferred to share capital. | n. Share-based compensation The Company’s stock option plan allows the Company’s directors, officers, employees, and consultants to acquire shares of the Company. The fair value of options granted is recognized as share-based compensation expense or capitalized to mineral interests with a corresponding increase in share-based payment reserves. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Where options are subject to vesting, each vesting tranche is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the grant date using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted. Share-based compensation expense is recognized over the tranche’s vesting period by a charge to profit or loss. For employees, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Compensation expense for share options granted to non-employees is recognized over the contract services period or, if none exists, from the date of grant until the options vest. Compensation associated with unvested options granted to non-employees is re-measured on each statement of financial position date. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of options that are expected to vest. In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, or where the fair value of goods or services received is not reliably measurable, they are measured at the fair value of the share-based compensation. Otherwise, share-based compensation is measured at the fair value of goods or services received. |
Loss per share | (l) Loss per share The Company presents loss per share data, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted loss per share is determined by adjusting the loss attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive common shares, including share options and warrants. | o. Loss per share Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average common shares outstanding are increased to include additional shares for the assumed exercise of share options and share purchase warrants, if dilutive. The number of additional common shares is calculated by assuming that outstanding share options and share purchase warrants were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting periods. |
Related party transactions | (m) Related party transactions Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction where there is a transfer of resources or obligations between related parties. | p. Related party transactions Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction where there is a transfer of resources or obligations between related parties. |
Cash and cash equivalents | e. Cash and cash equivalents Cash and cash equivalents include cash in banks and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. | |
Impairment of non-current assets | i. Impairment of non-current assets At each reporting period, management reviews mineral interest and property, plant and equipment for indicators of impairment. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction. In assessing value in use, the estimated future cash flows are discounted to their present value. If the recoverable amount of the asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in the profit or loss for that period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which that asset belongs. Past impairments are also considered at each reporting period and where there is an indication that an impairment loss may have decreased, the recoverable amount is calculated as outlined above to determine the extent of the recovery. If the recoverable amount of the asset is more than its carrying amount, the carrying amount of the asset is increased to its recoverable amount and the impairment loss is reversed in the profit or loss for that period. The increased carrying amount due to reversal will not be more than what the depreciated historical cost would have been if the impairment had not been recognized. | |
Other provisions | k. Other provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of past events, and it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. | |
Adoption of new accounting standards, interpretations and amendments | q. Adoption of new accounting standards, interpretations and amendments The Company has performed an assessment of new standards issued by the IASB that are not yet effective. The Company has assessed that the impact of adopting these accounting standards on its financial statements would not be significant | |
Critical accounting estimates and judgments | c. Use of estimates and judgements The preparation of these consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from management’s best estimates as additional information becomes available. Significant areas requiring the use of management estimates and judgments include: i) The determination of the fair value of the shares of the Company for the calculation of the share-based compensation. ii) The determination of the fair values of warrants held as marketable securities by the Company. iii) The assessment of the Company’s ability to continue as a going concern involves judgment regarding future funding available to identify new business opportunities and working capital requirements, the outcome of which is uncertain. iv) The determination that exploration, evaluation, and related costs incurred which were capitalized may have future economic benefits and may be economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including: geologic and other technical information, a history of conversion of mineral deposits with similar characteristics to its own properties to proven and probable mineral reserves, the quality and capacity of existing infrastructure facilities, evaluation of permitting and environmental issues and local support for the project. v) The measurement of deferred income tax assets and liabilities. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of transactions between company and subsidiary | Place of Proportion of Name of subsidiary incorporation ownership interest Principal activity Austin American Corporation (“Austin NV”) Nevada, USA 100 % Holds interests in exploration projects | Proportion of Place of Ownership Name of Subsidiary Incorporation Interest Principal Activity Austin American Corporation Nevada, United States 100 % Exploration company |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHORT-TERM INVESTMENTS | |
Schedule of short-term investments | December 31, December 31, 2022 2021 Term deposits $ 10,144,301 $ — RSTICs 1,504,778 — $ 11,649,079 $ — |
RECEIVABLES AND OTHER (Tables)
RECEIVABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RECEIVABLES AND OTHER | |
Schedule of receivables and other | December 31, December 31, 2022 2021 Prepaid expenses and deposits $ 176,703 $ 9,016 Tax receivables 34,582 3,721 $ 211,285 $ 12,737 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
MARKETABLE SECURITIES | ||
Schedule of fair value of the marketable securities | December 31, December 31, 2022 2021 Opening balance $ 196,847 $ 334,676 Realized gain on sale of marketable securities — 6,443 Proceeds from disposition of marketable securities — (38,632) Foreign exchange movements (5,740) 3,013 Unrealized fair value loss on marketable securities (174,634) (108,653) Ending balance $ 16,473 $ 196,847 | |
Schedule of estimated fair value of the warrants in NGE using the Black-Scholes pricing model | December 31, December 31, 2022 2021 Share price C$ 0.01 C$ 0.11 Exercise price C$ 0.50 C$ 0.50 Expected life 0.02 years 1.02 years Expected volatility 93.10 % 86.99 % Risk-free interest rate 4.30 % 0.25 % Expected dividend yield Nil Nil | December 31, 2021 December 31, 2020 Share price $ 0.11 $ 0.15 Exercise price $ 0.50 $ 0.50 Volatility 87 % 104 % Risk free interest rate 0.25 % 0.25 % Expected life 1.02 years 2.0 years Expected dividend yield $ nil $ nil |
E&E ASSETS (Tables)
E&E ASSETS (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
E&E ASSETS | ||
Schedule of property and nature of expenditure | Kelly Fourmile Lone Stockade Creek Basin Mountain Miller Mountain Total Balance - December 31, 2020 $ 231,414 $ 346,675 $ 108,648 $ — $ — $ 686,737 E&E expenditures: Acquisition costs 50,000 34,242 30,000 61,702 — 175,944 Consulting 656 21,300 7,236 2,109 — 31,301 Field work — 1,843 — — — 1,843 Finders’ fees — — — 10,000 — 10,000 Geophysics — — — 3,188 — 3,188 Mapping — 277 188 5,919 — 6,384 Mining rights and claim fees 95,958 54,669 80,370 114,919 — 345,916 Technical reports 1,126 6,120 11,285 — — 18,531 Travel — 4,835 — — — 4,835 Total E&E expenditures 147,740 123,286 129,079 197,837 — 597,942 Movement in foreign exchange — 1,477 — — — 1,477 Balance - December 31, 2021 $ 379,154 $ 471,438 $ 237,727 $ 197,837 $ — $ 1,286,156 E&E expenditures: Acquisition costs 50,000 54,433 20,000 25,000 25,000 174,433 Assays 24,554 — — — — 24,554 Consulting 12,693 47,007 7,406 7,956 16,329 91,391 Drilling 327,145 96,993 — — — 424,138 Field supplies 2,121 — — — 2,250 4,371 Field work 1,500 2,332 — — — 3,832 Finders’ fees — — — 10,000 — 10,000 Geophysics 3,000 — — 1,769 — 4,769 Mapping 6,375 — — 5,250 — 11,625 Mining rights and claim fees 96,333 53,095 80,370 49,749 46,666 326,213 Share-based compensation 5,235 5,233 5,235 5,235 5,235 26,173 Travel 6,769 4,144 — 44 566 11,523 Total E&E expenditures 535,725 263,237 113,011 105,003 96,046 1,113,022 Movement in foreign exchange — (30,144) — — — (30,144) Balance - December 31, 2022 $ 914,879 $ 704,531 $ 350,738 $ 302,840 $ 96,046 $ 2,369,034 | |
Kelly Creek | ||
E&E ASSETS | ||
Schedule of required minimum annual E&E expenditures on the project / property | September 1, 2022 C$ 750,000 (1) Complete June 1, 2023 C$ 1,000,000 In progress June 1, 2024 C$ 1,500,000 In progress June 1, 2025 C$ 1,500,000 In progress (1) $400,000 must be spent on geophysics, geochemistry, drilling or other mutually agreed program. | |
Schedule of advance royalty payments | October 1, 2020 $ 20,000 Paid October 1, 2021 $ 20,000 Paid October 1, 2022 $ 20,000 Paid October 1, 2023 and every year thereafter $ 50,000 (1) (1) In accordance with the terms of the agreement, the amount will be adjusted for inflation. | October 1, 2020 US$ 20,000 (paid) October 1, 2021 US$ 20,000 (paid) October 1, 2022 US$ 20,000 October 1, 2023 and annually thereafter US$ 50,000 (as adjusted for inflation) |
Schedule of minimum payments | September 16, 2021 $ 30,000 Paid September 16, 2022 $ 30,000 Paid September 16, 2023 and every year thereafter $ 30,000 | |
Fourmile Basin | ||
E&E ASSETS | ||
Schedule of pre-production payments | June 18, 2020 $ 25,000 Paid 33,333 common shares Issued December 18, 2020 $ 5,000 Paid June 18, 2021 $ 10,000 Paid December 18, 2021 $ 10,000 Paid June 18, 2022 $ 15,000 Paid December 18, 2022 and every six months thereafter $ 20,000 Paid | Effective Date US$ 25,000 cash (paid) 33,333 Company shares (issued) 6 months after Effective Date (December 18, 2020) US$ 5,000 cash (paid) 12 months after Effective Date (June 18, 2021) US$ 10,000 cash (paid) 18 months after Effective Date (December 18, 2021) US$ 10,000 cash (paid) 24 months after Effective Date (June 18, 2022) US$ 15,000 cash 30 months after Effective Date and every 6 months thereafter US$ 20,000 cash |
Schedule of required minimum annual E&E expenditures on the project / property | Year 1 from date of agreement $ 30,000 Complete Year 2 to Year 3 from date of agreement $ 50,000 Complete October 24, 2020 $ 5,000 Complete October 24, 2021 $ 10,000 Complete October 24, 2022 $ 15,000 Complete October 24, 2023 $ 20,000 In progress October 24, 2024 and every year thereafter $ 20,000 In progress | |
Schedule of advance royalty payments | October 24, 2020 $ 10,000 Paid October 24, 2021 $ 15,000 Paid October 24, 2022 $ 20,000 Paid October 24, 2023 and every year thereafter $ 25,000 | October 24, 2020 US$ 10,000 (paid) October 24, 2021 US$ 15,000 (paid) October 24, 2022 US$ 20,000 October 24, 2023 and every year thereafter US$ 25,000 |
Lone Mountain | ||
E&E ASSETS | ||
Schedule of pre-production payments | Signing of the lease $ 80,000 Paid November 1, 2021 $ 30,000 Paid November 1, 2022 $ 20,000 Paid November 1, 2023 $ 20,000 November 1, 2024 $ 30,000 November 1, 2025 and every year thereafter (1) $ 30,000 (1) Pre-production payments increase by $10,000 every year after November 1, 2025 to a maximum of $200,000 . | Within 5 days of signing the lease US$ 80,000 (paid) November 1, 2021 US$ 30,000 (paid) November 1, 2022 US$ 30,000 November 1, 2023 US$ 30,000 November 1, 2024 US$ 40,000 November 1, 2025 and each year thereafter Increasing by US $10,000 /year thereafter to a maximum of US $200,000 |
Schedule of required minimum annual E&E expenditures on the project / property | September 1, 2024 $ 150,000 In progress September 1, 2025 $ 250,000 In progress September 1, 2026 $ 300,000 In progress September 1, 2027 $ 300,000 In progress September 1, 2028 $ 400,000 In progress September 1, 2029 (1) $ 400,000 In progress (1) The work commitment terminates when $1,800,000 has been spent on the property. | |
Miller | ||
E&E ASSETS | ||
Schedule of annual lease payments | Signing of the lease $ 50,000 Paid 5,000 common shares Issued February 1, 2022 $ 25,000 Paid February 1, 2023 $ 25,000 Paid (1) February 1, 2024 and every year thereafter $ 30,000 (2) (1) The amount was paid subsequent to December 31, 2022. (2) Lease payments of $30,000 are required every year after February 1, 2024, until a total of $500,000 has been paid. | Within 5 days of signing the lease US$ 50,000 (paid) 5,000 Company shares (issued) February 1, 2022 US$ 25,000 (subsequently paid) February 1, 2023 US$ 25,000 February 1, 2024 and each year thereafter US $30,000 until a total of US $500,000 has been paid |
Stockade Mountain | ||
E&E ASSETS | ||
Schedule of pre-production payments | May 16, 2022 $ 15,000 Paid November 16, 2022 $ 10,000 Paid May 16, 2023 $ 10,000 November 16, 2023 $ 15,000 May 16, 2024 $ 15,000 November 16, 2024 and every six months thereafter $ 25,000 | |
Schedule of required minimum annual E&E expenditures on the project / property | May 16, 2023 $ 30,000 In progress May 16, 2024 2,000 meters of drilling In progress |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT | ||
Schedule of property and equipment | Computer equipment Net book value - December 31, 2020 $ 2,564 Depreciation (780) Movement in foreign exchange 19 Net book value - December 31, 2021 1,803 Depreciation (527) Movement in foreign exchange (95) Net book value - December 31, 2022 1,181 | Computer Equipment $ Balance April 21, 2020 — Additions 3,841 Depreciation (576) Balance December 31, 2020 3,265 Depreciation (980) Balance December 31, 2021 2,285 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Schedule of accounts payable and accrued liabilities | December 31, December 31, 2022 2021 Trade payables $ 64,600 $ 38,740 Accrued liabilities 33,225 22,033 $ 97,825 $ 60,773 |
SHARE CAPITAL AND OTHER RESER_2
SHARE CAPITAL AND OTHER RESERVES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE CAPITAL AND OTHER RESERVES | ||
Schedule of components of other reserves | December 31, December 31, 2022 2021 Other reserve - Share options $ 1,781,096 $ 1,624,053 Other reserve - Warrants 263,596 — $ 2,044,692 $ 1,624,053 | |
Schedule of changes in share options | 2022 2021 Weighted Weighted Number of average Number of average share options exercise price share options exercise price Outstanding, January 1, 716,663 $ 2.37 716,663 $ 2.36 Granted 460,003 0.92 — — Expired (83,333) 2.36 — — Outstanding, December 31, 1,093,333 $ 1.67 716,663 $ 2.37 | Number of share Weighted average options exercise price $ Balance April 21, 2020 — — Granted 716,663 3.00 Outstanding as at December 31, 2020 716,663 3.00 Outstanding as at December 31, 2021 716,663 3.00 |
Schedule of information about share options outstanding and exercisable | Share options outstanding Share options exercisable Number of Weighted Number of Weighted share options average years share options average Exercise prices outstanding to expiry exercisable exercise price $0.50 - $1.00 460,003 4.82 114,994 0.92 $2.01 - $2.50 633,330 7.20 633,330 $ 2.22 1,093,333 6.20 748,324 $ 2.02 | At December 31, 2021, the following share options were outstanding and exercisable: Number of share Exercise price per options share Expiry Date $ $ 716,663 3.00 December 2, 2030 Number of share options December 31, 2021 Weighted average exercise price for exercisable options $ 3.00 Weighted average share price for options exercised — Weighted average years to expiry for exercisable options 8.93 years |
Schedule of weighted average assumptions used to estimate the fair value of share options granted | For the year ended December 31, December 31, 2022 2021 Expected life 5.00 years N/A Expected volatility 143.18 % N/A Risk-free interest rate 4.09 % N/A Expected dividend yield — N/A Forfeiture rate — N/A | |
Schedule of changes in warrants | 2022 2021 Number of Warrant Number of Warrant warrants reserve warrants reserve Outstanding, January 1, — $ — — $ — Transactions during the year: Warrants issued - IPO 262,833 238,217 — — Warrants issued - consultants 100,000 25,379 — — Outstanding, December 31, 362,833 $ 263,596 — $ — | |
Schedule of weighted average assumptions used to estimate the fair value of warrants using the Black-Scholes pricing model | For the year ended December 31, December 31, 2022 2021 Expected life 1.91 years N/A Expected volatility 109.94 % N/A Risk-free interest rate 1.42 % N/A Expected dividend yield — N/A Forfeiture rate — N/A |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
Schedule of directors and key management compensation | For the year ended December 31, December 31, 2022 2021 Management and consulting fees $ 559,591 $ 12,206 Share-based compensation 136,148 — Directors’ fees 44,380 — $ 740,119 $ 12,206 | Compensation 2021 2020 $ $ Management fees (i) 6,000 2,000 Accounting fees (ii) 9,300 — Share-based payments (iii) — 1,807,450 15,300 1,809,450 (i) Management fees are compensation paid to an officer of the Company. (ii) Accounting fees are fees paid to the CFO for preparation of the financial statements. (iii) Share-based payment is the fair value of options granted and vested. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
Schedule of net change in non-cash working capital items included in E&E assets | For the year ended December 31, December 31, 2022 2021 Accounts payable and accrued liabilities $ (37,130) $ — Share-based compensation 26,173 — Common shares issued — 11,702 $ (10,957) $ 11,702 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
FINANCIAL RISK MANAGEMENT | ||
Schedule of impact on pre-tax loss of a 10% change in the USD:CAD exchange rate on financial assets and liabilities denominated in CAD | Impact of currency rate change on pre-tax loss 10% increase 10% decrease Cash and cash equivalents $ 11,629 $ (11,629) Receivables and other 16,098 (16,098) Marketable securities 1,647 (1,647) Accounts payable and accrued liabilities (5,234) 5,234 | |
Schedule of carrying amount of financial assets represents the maximum credit exposure | December 31, December 31, 2022 2021 Cash and cash equivalents $ 630,623 $ 1,094,550 Short-term investments 11,649,079 — $ 12,279,702 $ 1,094,550 | |
Schedule of contractual undiscounted cash flow requirements for contractual obligations | Carrying Contractual Due within Due within Due within amount cash flows 1 year 2 years 3 years Accounts payable and accrued liabilities $ 97,825 $ 97,825 $ 97,825 $ — $ — $ 97,825 $ 97,825 $ 97,825 $ — $ — | Carrying Contractual Within Within Within Amount Cash Flows 1 year 2 years 3 years $ $ $ $ $ Accounts payable and accrued liabilities 77,048 77,048 77,048 — — Total as at December 31, 2021 77,408 77,048 77,048 — — |
Schedule of financial assets and liabilities by level within the fair value hierarchy | As at December 31, 2022 Carrying value Fair value FVTPL Amortized cost Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ — $ 630,623 $ — $ — $ — Short-term investments — 11,649,079 — — — Marketable securities 16,473 — 16,472 — 1 $ 16,473 $ 12,279,702 $ 16,472 $ — $ 1 As at December 31, 2021 Carrying value Fair value FVTPL Amortized Level 1 Level 2 Level 3 cost Financial assets Cash and cash equivalents $ — $ 1,094,550 $ — $ — $ — Marketable securities 196,847 — 193,572 — 3,275 $ 196,847 $ 1,094,550 $ 193,572 $ — $ 3,275 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
TAXATION | ||
Schedule of deferred income taxes | For the year ended December 31, December 31, 2022 2021 Tax loss carry forwards $ 332,184 $ 99,672 Share issuance costs 288,230 — Marketable securities and other 74,568 41,908 Deferred income taxes not recognized (694,982) (141,580) $ — $ — | December 31, December 31, 2021 2020 $ $ Net income (loss) before income taxes (502,779) (2,070,249) Income tax recovery based on effective rate of 27% (2020 – 27% ) (135,750) (551,850) Permanent differences and others 26,856 479,127 Change in deferred tax assets not recognized 108,894 72,723 Net deferred tax (recovery) — — |
Schedule of income tax expense (recovery) | For the year ended December 31, December 31, 2022 2021 Expected income tax recovery $ (288,466) $ (108,298) Share issuance costs (298,176) — Impact of difference in tax rates and other (10,670) 21,425 Share-based compensation 43,910 — Deferred income taxes not recognized 553,402 86,873 $ — $ — | December 31, December 31, 2021 2020 $ $ Non-capital loss carry-forwards 128,486 53,142 Marketable securities and others 53,131 19,581 Deferred tax assets not recognized (181,617) (72,723) — — |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS | |
Schedule of gross contractual obligations | Within 15 days of acquisition $ 5,000 Paid 6 months after acquisition $ 5,000 Paid 12 months after acquisition $ 5,000 Paid 18 months after acquisition $ 5,000 Paid 24 months after acquisition $ 7,500 Paid (1) 30 months after acquisition $ 7,500 36 months after acquisition $ 10,000 42 months after acquisition $ 10,000 48 months after acquisition and every six months thereafter $ 15,000 (1) The amount was paid subsequent to December 31, 2022. |
NATURE OF OPERATIONS AND GOIN_2
NATURE OF OPERATIONS AND GOING CONCERN (Details) | 8 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CAD ($) | |
NATURE OF OPERATIONS AND GOING CONCERN | |||||||
Net loss for the year | $ (2,070,249) | $ (1,068,391) | $ (401,105) | $ (502,779) | |||
Used cash in operating activities | $ 147,438 | 1,791,812 | 276,699 | $ 343,635 | |||
Cash and cash equivalents | 630,623 | 1,094,550 | $ 1,387,670 | $ 1,902,133 | $ 2,421,796 | ||
Working capital (current assets less current liabilities) surplus | 12,393,162 | ||||||
Accumulated deficit | $ 3,019,851 | $ 1,951,460 | $ 2,573,028 | $ 1,550,355 | $ 2,070,249 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Basis of consolidation (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Proportion of Ownership Interest (in percent) | 50% | |
Austin American Corporation | ||
SIGNIFICANT ACCOUNTING POLICIES | ||
Proportion of Ownership Interest (in percent) | 100% | 100% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Property, plant and equipment (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life (in percent) | 15% | 15% |
Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life (in percent) | 30% | 30% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Impairment of non-financial assets (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
SIGNIFICANT ACCOUNTING POLICIES | |
Impairment loss on non-financial assets | $ 0 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) | Dec. 31, 2022 USD ($) |
SHORT-TERM INVESTMENTS | |
Term deposits | $ 10,144,301 |
RSTICs | 1,504,778 |
Total | $ 11,649,079 |
RECEIVABLES AND OTHER (Details)
RECEIVABLES AND OTHER (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
RECEIVABLES AND OTHER | |||
Prepaid expenses and deposits | $ 176,703 | $ 9,016 | |
Tax receivables | 34,582 | 3,721 | |
Total | $ 211,285 | $ 12,737 | $ 2,952 |
MARKETABLE SECURITIES - Fair va
MARKETABLE SECURITIES - Fair value of the marketable securities (Details) | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | |
MARKETABLE SECURITIES | ||||
Opening balance | $ 196,847 | $ 334,676 | $ 426,109 | |
Realized gain on sale of marketable securities | 6,443 | 8,075 | ||
Unrealized loss on marketable securities | $ (73,891) | (136,197) | ||
Unrealized fair value loss on marketable securities | (174,634) | (108,653) | ||
Ending balance | $ 426,109 | 16,473 | 196,847 | $ 249,562 |
NGE | ||||
MARKETABLE SECURITIES | ||||
Opening balance | 196,847 | 334,676 | ||
Realized gain on sale of marketable securities | 6,443 | |||
Proceeds from disposition of marketable securities | (38,632) | |||
Foreign exchange movements | (5,740) | 3,013 | ||
Unrealized fair value loss on marketable securities | (174,634) | (108,653) | ||
Ending balance | $ 16,473 | $ 196,847 |
MARKETABLE SECURITIES - Estimat
MARKETABLE SECURITIES - Estimated fair Value of the warrants - (Details) | Dec. 31, 2022 Y $ / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2021 Y | Dec. 31, 2021 | Dec. 31, 2021 D | Dec. 31, 2020 $ / shares D |
Share price | ||||||
MARKETABLE SECURITIES | ||||||
Measurement input | 0.01 | 0.11 | ||||
Measurement input | 0.11 | 0.15 | ||||
Exercise price | ||||||
MARKETABLE SECURITIES | ||||||
Measurement input | 0.50 | 0.50 | ||||
Measurement input | 0.50 | 0.50 | ||||
Expected life | ||||||
MARKETABLE SECURITIES | ||||||
Measurement input | 0.02 | 1.02 | 1.02 | 2 | ||
Expected volatility | ||||||
MARKETABLE SECURITIES | ||||||
Measurement input | 0.9310 | 0.8699 | 1.04 | |||
Risk-free interest rate | ||||||
MARKETABLE SECURITIES | ||||||
Measurement input | 0.0430 | 0.0025 | 0.0025 | |||
Expected dividend yield | ||||||
MARKETABLE SECURITIES | ||||||
Measurement input | 0 | 0 |
MARKETABLE SECURITIES - Additio
MARKETABLE SECURITIES - Additional Information - (Details) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2021 CAD ($) shares | Dec. 31, 2020 CAD ($) shares |
MARKETABLE SECURITIES | ||||
Number of shares held | 2,231,000 | 2,231,000 | 2,231,000 | 2,500,000 |
Number of warrants held | 1,250,000 | 1,250,000 | ||
Estimated fair value of warrants | $ 1 | $ 3,275 | $ 4,152 | $ 51,109 |
NGE | ||||
MARKETABLE SECURITIES | ||||
Number of shares held | 2,231,000 | 2,231,000 | 2,231,000 | |
Number of warrants held | 1,250,000 | 1,250,000 | 1,250,000 |
E&E ASSETS (Details)
E&E ASSETS (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | |
E&E ASSETS | |||
Balance at beginning | $ 1,286,156 | $ 686,737 | $ 875,371 |
E&E expenditures: | |||
Acquisition costs | 174,433 | 175,944 | |
Assays | 24,554 | ||
Consulting | 91,391 | 31,301 | |
Drilling | 424,138 | ||
Field supplies | 4,371 | ||
Field work | 3,832 | 1,843 | |
Finders' fees | 10,000 | 10,000 | |
Geophysics | 4,769 | 3,188 | |
Mapping | 11,625 | 6,384 | |
Mining rights and claim fees | 326,213 | 345,916 | |
Share-based compensation | 26,173 | ||
Technical reports | 18,531 | ||
Travel | 11,523 | 4,835 | |
Total E&E expenditures | 1,113,022 | 597,942 | |
Movement in foreign exchange | (30,144) | 1,477 | |
Balance at ending | 2,369,034 | 1,286,156 | 1,632,043 |
Kelly Creek | |||
E&E ASSETS | |||
Balance at beginning | 379,154 | 231,414 | 295,145 |
E&E expenditures: | |||
Acquisition costs | 50,000 | 50,000 | |
Assays | 24,554 | ||
Consulting | 12,693 | 656 | |
Drilling | 327,145 | ||
Field supplies | 2,121 | ||
Field work | 1,500 | ||
Geophysics | 3,000 | ||
Mapping | 6,375 | ||
Mining rights and claim fees | 96,333 | 95,958 | |
Share-based compensation | 5,235 | ||
Technical reports | 1,126 | ||
Travel | 6,769 | ||
Total E&E expenditures | 535,725 | 147,740 | |
Balance at ending | 914,879 | 379,154 | 481,337 |
Fourmile Basin | |||
E&E ASSETS | |||
Balance at beginning | 471,438 | 346,675 | 441,387 |
E&E expenditures: | |||
Acquisition costs | 54,433 | 34,242 | |
Consulting | 47,007 | 21,300 | |
Drilling | 96,993 | ||
Field work | 2,332 | 1,843 | |
Mapping | 277 | ||
Mining rights and claim fees | 53,095 | 54,669 | |
Share-based compensation | 5,233 | ||
Technical reports | 6,120 | ||
Travel | 4,144 | 4,835 | |
Total E&E expenditures | 263,237 | 123,286 | |
Movement in foreign exchange | (30,144) | 1,477 | |
Balance at ending | 704,531 | 471,438 | 597,689 |
Lone Mountain | |||
E&E ASSETS | |||
Balance at beginning | 237,727 | 108,648 | 138,839 |
E&E expenditures: | |||
Acquisition costs | 20,000 | 30,000 | |
Consulting | 7,406 | 7,236 | |
Mapping | 188 | ||
Mining rights and claim fees | 80,370 | 80,370 | |
Share-based compensation | 5,235 | ||
Technical reports | 11,285 | ||
Total E&E expenditures | 113,011 | 129,079 | |
Balance at ending | 350,738 | 237,727 | 302,035 |
Miller | |||
E&E ASSETS | |||
Balance at beginning | 197,837 | ||
E&E expenditures: | |||
Acquisition costs | 25,000 | 61,702 | |
Consulting | 7,956 | 2,109 | |
Finders' fees | 10,000 | 10,000 | |
Geophysics | 1,769 | 3,188 | |
Mapping | 5,250 | 5,919 | |
Mining rights and claim fees | 49,749 | 114,919 | |
Share-based compensation | 5,235 | ||
Travel | 44 | ||
Total E&E expenditures | 105,003 | 197,837 | |
Balance at ending | 302,840 | $ 197,837 | $ 250,982 |
Stockade Mountain | |||
E&E expenditures: | |||
Acquisition costs | 25,000 | ||
Consulting | 16,329 | ||
Field supplies | 2,250 | ||
Mining rights and claim fees | 46,666 | ||
Share-based compensation | 5,235 | ||
Travel | 566 | ||
Total E&E expenditures | 96,046 | ||
Balance at ending | $ 96,046 |
E&E ASSETS- Kelly Creek Project
E&E ASSETS- Kelly Creek Project (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 01, 2025 CAD ($) | Jun. 01, 2024 CAD ($) | Jun. 01, 2023 CAD ($) | Sep. 16, 2022 USD ($) | Sep. 01, 2022 CAD ($) | Jun. 01, 2022 CAD ($) | Sep. 16, 2021 USD ($) | Sep. 01, 2021 CAD ($) | Mar. 03, 2021 | Jul. 07, 2020 agreement | May 29, 2020 CAD ($) $ / shares shares | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | Dec. 31, 2021 USD ($) mi² | Dec. 31, 2022 USD ($) agreement | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 USD ($) mi² | Dec. 31, 2022 CAD ($) mi² | Dec. 31, 2022 USD ($) mi² | Sep. 16, 2020 USD ($) | |
E&E ASSETS | |||||||||||||||||||||
Percentage of interest in a joint venture | 70% | ||||||||||||||||||||
Percentage of interest in a joint venture, that can be earned upon incurring the required minimum annual E&E expenditures on the project | 51% | ||||||||||||||||||||
Required minimum annual E&E expenditures, September 1, 2022 | $ 5,000 | ||||||||||||||||||||
Required minimum annual E&E expenditures, June 1, 2024 | 15,000 | ||||||||||||||||||||
Required minimum annual E&E expenditures, June 1, 2025 | 20,000 | ||||||||||||||||||||
Required Minimum Annual Exploration And Evaluation Expenditures, Period Two | 10,000 | ||||||||||||||||||||
Required minimum annual E&E expenditures, June 1, 2023 | 10,000 | ||||||||||||||||||||
Extension period for other deadlines | 1 year | ||||||||||||||||||||
Kelly Creek | |||||||||||||||||||||
E&E ASSETS | |||||||||||||||||||||
Percentage of interest in a joint venture | 70% | 70% | 70% | 51% | 51% | ||||||||||||||||
Required minimum annual E&E expenditures, September 1, 2022 | $ 750,000 | ||||||||||||||||||||
Required minimum annual E&E expenditures, June 1, 2024 | 1,500,000 | ||||||||||||||||||||
Required minimum annual E&E expenditures, June 1, 2025 | 1,500,000 | ||||||||||||||||||||
Required minimum annual E&E expenditures to be spent on geophysics, geochemistry, drilling or other mutually agreed program, September 1, 2022 | 400,000 | ||||||||||||||||||||
Proportion Of Additional Ownership Interest In Joint Venture | 19% | 19% | |||||||||||||||||||
Additional annual expenditures to be incurred before each of June 1, 2026, June 1, 2027 and June 1, 2028 | 1,500,000 | ||||||||||||||||||||
Number of days from approval of feasibility study during which the Company is obligated to arrange for debt financing | 120 days | ||||||||||||||||||||
Percentage of additional interest in the Joint Venture to be transferred upon arranging debt financing | 5% | ||||||||||||||||||||
Number of royalty agreements | agreement | 2 | 2 | |||||||||||||||||||
Required Minimum Annual Exploration And Evaluation Expenditures, Period Two | 1,000,000 | ||||||||||||||||||||
Required minimum annual E&E expenditures, June 1, 2023 | $ 1,000,000 | ||||||||||||||||||||
Number of units purchases | shares | 2,500,000 | ||||||||||||||||||||
Purchase price per unit | $ / shares | $ 0.20 | ||||||||||||||||||||
Cost of units purchased | $ 500,000 | ||||||||||||||||||||
Minimum yearly expenditures toward exploration and development work, Original | $ 1,500,000 | $ 1,500,000 | $ 1,000,000 | $ 1,000,000 | |||||||||||||||||
Minimum yearly expenditures toward exploration and development work Amended | $ 1,500,000 | $ 1,500,000 | $ 1,000,000 | $ 750,000 | |||||||||||||||||
Amended minimum yearly expenditures, which must be spent on geophysics, geochemistry, drilling, or other mutually agreed program | $ 400,000 | ||||||||||||||||||||
Percentage of additional participating interest in JV | 19% | 19% | |||||||||||||||||||
Additional yearly expenditures to be incurred before each of June 1, 2026, June 1, 2027 and June 1, 2028 | $ 1,500,000 | ||||||||||||||||||||
Number of days for transfer of participating JV interest | 120 days | 120 days | |||||||||||||||||||
Percentage of interest in the Joint Venture to be transferred by Pediment to Austin NV | 5% | 5% | |||||||||||||||||||
Threshold diluted percentage of interest in the Joint Venture, for conversion to net profits interest | 10% | 10% | |||||||||||||||||||
Percentage of net profit interest upon dilution of participating interest to 10% | 10% | 10% | |||||||||||||||||||
Kelly Creek | Genesis agreement | |||||||||||||||||||||
E&E ASSETS | |||||||||||||||||||||
Percentage of Genesis claims that can be purchased | 100% | 100% | 100% | ||||||||||||||||||
Purchase price of Genesis claims | $ 1,500,000 | $ 1,500,000 | |||||||||||||||||||
Percentage of net smelter return royalty | 1.50% | 1.50% | 1.50% | ||||||||||||||||||
Advance royalty payments made | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,000 | |||||||||||||||||
October 1, 2023 and every year thereafter | 50,000 | $ 50,000 | 50,000 | ||||||||||||||||||
Reduction in net smelter return royalty upon payment of specified amount | 50% | ||||||||||||||||||||
Percentage of net smelter return royalty upon payment of specified amount | 0.75% | 0.75% | 0.75% | ||||||||||||||||||
Payment to reduce net smelter return royalty | 750,000 | ||||||||||||||||||||
Advance royalty payments to be made, October 1, 2022 | 20,000 | $ 20,000 | |||||||||||||||||||
Kelly Creek | Hot Pot agreement | |||||||||||||||||||||
E&E ASSETS | |||||||||||||||||||||
Percentage of net smelter return royalty | 3% | 3% | 3% | ||||||||||||||||||
Percentage of net smelter return royalty upon payment of specified amount | 2% | 2% | 2% | ||||||||||||||||||
Payment to reduce net smelter return royalty | $ 2,000,000 | $ 2,000,000 | 2,000,000 | ||||||||||||||||||
Annual lease payments made | $ 30,000 | $ 30,000 | |||||||||||||||||||
Annual payment due on September 16th each year | $ 30,000 | $ 30,000 | |||||||||||||||||||
September 16, 2023,and every year thereafter | $ 30,000 | ||||||||||||||||||||
Kelly Creek | Hot Pot agreement | Battle Mountain Gold Exploration Corporation | |||||||||||||||||||||
E&E ASSETS | |||||||||||||||||||||
Percentage of net smelter return royalty | 1.25% | 1.25% | 1.25% | ||||||||||||||||||
Area within the original boundary of the Hot Pot property, considered for royalty payments | mi² | 2.5 | 2.5 | 2.5 | 2.5 |
E&E ASSETS - Fourmile Basin Pro
E&E ASSETS - Fourmile Basin Property (Details) | 12 Months Ended | ||||||||||||||
Dec. 18, 2022 USD ($) | Oct. 24, 2022 USD ($) | Jun. 18, 2022 USD ($) | Dec. 18, 2021 USD ($) | Oct. 24, 2021 USD ($) | Jun. 18, 2021 USD ($) | Dec. 18, 2020 USD ($) shares | Nov. 07, 2020 USD ($) | Oct. 24, 2020 USD ($) | Jun. 18, 2020 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) T | Dec. 31, 2021 CAD ($) T | Oct. 24, 2024 USD ($) | Oct. 24, 2023 USD ($) | |
E&E ASSETS | |||||||||||||||
Required minimum E&E expenditures, October 24, 2020 | $ 5,000 | ||||||||||||||
Required minimum E&E expenditures, October 24, 2021 | 10,000 | ||||||||||||||
Required minimum E&E expenditures, October 24, 2022 | 15,000 | ||||||||||||||
Required minimum E&E expenditures, October 24, 2023 | 20,000 | ||||||||||||||
Required minimum E&E expenditures, October 24, 2024 and every year thereafter | 20,000 | ||||||||||||||
NexGen Lease | |||||||||||||||
E&E ASSETS | |||||||||||||||
Required minimum E&E expenditures, October 24, 2020 | 10,000 | ||||||||||||||
Required minimum E&E expenditures, October 24, 2021 | 15,000 | ||||||||||||||
Required minimum E&E expenditures, October 24, 2022 | 20,000 | ||||||||||||||
Required minimum E&E expenditures, October 24, 2024 and every year thereafter | 25,000 | ||||||||||||||
Fourmile Basin | Fourmile Mineral Lease | |||||||||||||||
E&E ASSETS | |||||||||||||||
Pre-production payments made in cash | $ 15,000 | $ 10,000 | $ 10,000 | $ 5,000 | $ 25,000 | ||||||||||
Pre-production payments made in shares | shares | 33,333 | 33,333 | |||||||||||||
Percentage of net smelter return royalty | 2% | 2% | |||||||||||||
Percentage of net smelter return royalty for third-pay claims | 0.50% | 0.50% | |||||||||||||
Reduction in net smelter return royalty upon payment of specified amount | 50% | 50% | |||||||||||||
Percentage of net smelter return royalty for third-pay claims upon payment of specified amount | 0.25% | 0.25% | |||||||||||||
Primary term of the lease | 35 years | ||||||||||||||
Maximum extension term of the lease | 50 years | 50 years | |||||||||||||
Pre-production payments to be made 24 months after Effective Date (June 18, 2022) | $ 20,000 | ||||||||||||||
Minimum exploration costs to be incurred, Year 1 from Effective Date, Fulfilled | $ 30,000 | ||||||||||||||
Minimum exploration costs to be incurred, Year 2 to Year 3 from Effective Date | 50,000 | ||||||||||||||
Minimum exploration costs to be incurred, Year 2 to Year 3 from Effective Date, Fulfilled | $ 34,000 | ||||||||||||||
Threshold minimum production royalties to be paid per quarter | $ 25,000 | ||||||||||||||
Fourmile Basin | Fourmile Mineral Lease | La Cuesta International, Inc. ("LCI") | |||||||||||||||
E&E ASSETS | |||||||||||||||
Percentage of claims owned | 100% | 100% | |||||||||||||
Payment to reduce net smelter return royalty | $ 10,000,000 | ||||||||||||||
Percentage of net smelter return royalty upon payment of specified amount | 1% | 1% | |||||||||||||
Fourmile Basin | NexGen Lease | |||||||||||||||
E&E ASSETS | |||||||||||||||
Advance royalty payments made | $ 15,000 | $ 10,000 | |||||||||||||
Advance royalty payments to be made, October 24, 2022 | $ 20,000 | ||||||||||||||
Advance royalty payments to be made, October 24, 2023 and every year thereafter | $ 25,000 | ||||||||||||||
Percentage of net smelter return royalty that can be bought | 2% | 2% | |||||||||||||
Purchase price of the first 1% of net smelter return royalty that can be bought | $ 250,000 | ||||||||||||||
Purchase price of the remaining 1% of net smelter return royalty that can be bought | 500,000 | ||||||||||||||
Required work commitment expenditures fulfilled | $ 15,000 | $ 10,000 | $ 5,000 | $ 10,000 | |||||||||||
Required work commitment expenditures to be fulfilled on October 24, 2023 | $ 20,000 | ||||||||||||||
Required work commitment expenditures to be fulfilled on October 24, 2024 and every year thereafter | $ 20,000 | ||||||||||||||
Minimum sustained rate of production per day (in tons) | T | 100 | 100 | |||||||||||||
Amount of work expenditures incurred by a prior lessee agreed to be applied against the Company's expenditure requirements | $ 40,000 | ||||||||||||||
Amount of October 2023 expenditures satisfied by applying prior lessee's work expenditure by NexGen | $ 10,000 | ||||||||||||||
Fourmile Basin | Mineral lease agreement with LCI | |||||||||||||||
E&E ASSETS | |||||||||||||||
Pre-production payments made in cash | $ 20,000 | $ 15,000 | $ 10,000 | $ 10,000 | $ 5,000 | $ 25,000 | |||||||||
Pre-production payments to be made, every six months after period six | 20,000 | ||||||||||||||
Required minimum E&E expenditures, October 24, 2020 | 30,000 | ||||||||||||||
Required minimum E&E expenditures, Year 2 to Year 3 from date of agreement | $ 50,000 | ||||||||||||||
Percentage of net smelter return royalty | 2% | ||||||||||||||
Percentage of net smelter return royalty for third-pay claims | 0.50% | ||||||||||||||
Reduction in net smelter return royalty upon payment of specified amount | 50% | ||||||||||||||
Percentage of net smelter return royalty for third-pay claims upon payment of specified amount | 0.25% | ||||||||||||||
Payment to reduce first 1.0% of net smelter return royalty | $ 250,000 | ||||||||||||||
Payment to reduce remaining 1.0% of net smelter return royalty | $ 500,000 | ||||||||||||||
Percentage of production royalty | 2% | ||||||||||||||
Percentage of net smelter return royalty upon payment of specified amount | 1% | ||||||||||||||
Fourmile Basin | Mineral lease agreement with LCI | La Cuesta International, Inc. ("LCI") | |||||||||||||||
E&E ASSETS | |||||||||||||||
Percentage of claims owned | 100% | ||||||||||||||
Payments made | $ 10,000,000 |
E&E ASSETS - Lone Mountain Proj
E&E ASSETS - Lone Mountain Project (Details) | 12 Months Ended | ||||
Nov. 01, 2022 USD ($) | Nov. 01, 2021 USD ($) | Nov. 01, 2020 USD ($) oz | Dec. 31, 2022 USD ($) oz | Apr. 29, 2021 USD ($) | |
E&E ASSETS | |||||
Required minimum annual E&E expenditures, period one | $ 5,000 | ||||
Required minimum annual E&E expenditures, period two | 10,000 | ||||
Required minimum annual E&E expenditures, period three | 15,000 | ||||
Required minimum annual E&E expenditures, period four | 20,000 | ||||
Lone Mountain | |||||
E&E ASSETS | |||||
Pre-production payments made in cash | $ 20,000 | $ 30,000 | $ 80,000 | ||
Pre-production payments to be made, November 1, 2022 | 30,000 | ||||
Pre-production payments to be made, November 1, 2023 | 30,000 | 20,000 | |||
Pre-production payments to be made, November 1, 2024 | 40,000 | 30,000 | |||
Pre-production payments to be made, November 1, 2025 and every year thereafter | 30,000 | ||||
Incremental pre-production payments to be made, each year thereafter | 200,000 | 10,000 | |||
Maximum pre-production payments to be made, November 1, 2025 and each year thereafter | $ 10,000 | 200,000 | |||
Required minimum annual E&E expenditures, period one | 150,000 | ||||
Required minimum annual E&E expenditures, period two | 250,000 | ||||
Required minimum annual E&E expenditures, period three | 300,000 | ||||
Required minimum annual E&E expenditures, period four | 300,000 | ||||
Required minimum annual E&E expenditures, period five | 400,000 | ||||
Required minimum annual E&E expenditures, period six | 400,000 | ||||
Threshold amount of expenditure considered for termination of work commitment | $ 1,800,000 | $ 1,800,000 | |||
Percentage of net smelter return royalty | 3% | 3% | |||
Reduction in net smelter return royalty upon payment of specified amount | 0.50% | ||||
Percentage of net smelter return royalty upon payment of specified amount | 2.50% | 2.50% | |||
Threshold minimum gold to be discovered to trigger the option to purchase the entire interest in project (in ounces) | oz | 500,000 | 500,000 | |||
Payment to reduce net smelter return royalty | $ 2,000,000 | ||||
Primary term of the lease | 10 years | ||||
Maximum extension term of the lease | 10 years | ||||
Purchase price of entire interest in project | $ 2,000,000 | ||||
Annual work commitments, September 1, 2021 | 150,000 | $ 0 | |||
Annual work commitments, September 1, 2022 | 250,000 | 400,000 | |||
Annual work commitments, September 1, 2023 | 300,000 | 300,000 | |||
Annual work commitments, September 1, 2024 | 300,000 | 300,000 | |||
Annual work commitments, September 1, 2025 | 400,000 | 400,000 | |||
Annual work commitments, September 1, 2026 | $ 400,000 | $ 400,000 |
E&E ASSETS - Miller Project (De
E&E ASSETS - Miller Project (Details) | 12 Months Ended | ||||||||
Feb. 01, 2023 USD ($) | Feb. 01, 2022 USD ($) | Feb. 01, 2021 USD ($) shares | Dec. 17, 2020 USD ($) km² claim m shares | Dec. 31, 2022 USD ($) km² claim m | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CAD ($) | |
E&E ASSETS | |||||||||
Total number of unpatented lode mining claims | claim | 281 | ||||||||
Carrying value | $ 2,369,034 | $ 1,286,156 | $ 1,632,043 | $ 686,737 | $ 875,371 | ||||
Miller | |||||||||
E&E ASSETS | |||||||||
Annual lease payments made | $ 25,000 | $ 50,000 | $ 50,000 | ||||||
Annual lease payments made in shares | shares | 5,000 | 5,000 | |||||||
Annual lease payments to be made, February 1, 2024 and each year thereafter | $ 30,000 | 30,000 | |||||||
Annual lease payments due every year thereafter | 30,000 | ||||||||
Maximum annual lease payments to be made, thereafter | $ 500,000 | $ 500,000 | |||||||
First work commitment (in meters) | m | 2,000 | 2,000 | |||||||
Second work commitment (in meters) | m | 3,000 | 3,000 | |||||||
Purchase price of the net smelter return royalty that can be bought | $ 2,000,000 | $ 500,000 | |||||||
Percentage of net smelter return royalty, if the Company options or purchases claims within the area of influence from third parties | 0.50% | 2% | |||||||
Percentage of net smelter return royalty that can be bought | 1% | 0.50% | |||||||
Percentage of net smelter return royalty | 2% | 2% | |||||||
Reduction in net smelter return royalty upon payment of specified amount | 50% | ||||||||
Percentage of net smelter return royalty upon payment of specified amount | 1% | 1% | |||||||
Payment to reduce net smelter return royalty | $ 2,000,000 | ||||||||
Number of claims in the original lease agreement | claim | 117 | 117 | |||||||
Number of additional claims staked in | claim | 164 | 164 | |||||||
Total number of unpatented lode mining claims | claim | 281 | ||||||||
Area of unpatented lode mining claims (in km2) | km² | 23.5 | 23.5 | |||||||
Number of newly staked claims under dispute | claim | 134 | 134 | |||||||
Number of original claims under dispute | claim | 36 | 36 | |||||||
Carrying value | $ 302,840 | 197,837 | $ 250,982 | ||||||
Primary term of the lease | 35 years | ||||||||
Period after the Listing Date within which the first work commitment is to be fulfilled | 18 months | ||||||||
Period after the Listing Date within which the second work commitment is to be fulfilled | 36 months | ||||||||
Purchase price of entire interest in project | $ 500,000 | ||||||||
Acquisition costs capitalized | $ 88,888 | ||||||||
Miller | Payment of lease liabilities | |||||||||
E&E ASSETS | |||||||||
Annual lease payments made | $ 25,000 | ||||||||
Annual lease payments to be made, February 1, 2023 | $ 25,000 |
E&E ASSETS -Stockade Mountain P
E&E ASSETS -Stockade Mountain Proper (Details) | 12 Months Ended | ||
Nov. 16, 2022 USD ($) | May 16, 2022 USD ($) | Dec. 31, 2022 USD ($) m² | |
E&E ASSETS | |||
Percentage of interest in a joint venture | 70% | ||
Required minimum annual E&E expenditures, September 1, 2022 | $ 5,000 | ||
Stockade Mountain | |||
E&E ASSETS | |||
Percentage of interest in a joint venture | 100% | ||
Pre-production payments made in cash | $ 10,000 | $ 15,000 | |
Pre-production payments to be made, May 16, 2023 | $ 10,000 | ||
Pre-production payments to be made, November 16, 2023 | 15,000 | ||
Pre-production payments to be made, May 16, 2024 | 15,000 | ||
Pre-production payments to be made, November 16, 2024 and every six months thereafter | 25,000 | ||
Required minimum annual E&E expenditures, September 1, 2022 | $ 30,000 | ||
Required minimum area to be drilled, May 16, 2024 (in meters) | m² | 2,000 | ||
Percentage of net smelter return royalty | 2% | ||
Percentage of net smelter return royalty for third-pay claims upon payment of specified amount | 0.25% | ||
Payment to reduce net smelter return royalty | $ 10,000,000 | ||
Reduction in net smelter return royalty upon payment of specified amount | 50% | ||
Percentage of net smelter return royalty upon payment of specified amount | 1% |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | |
PROPERTY, PLANT AND EQUIPMENT | ||||
Balance at the beginning | $ 1,803 | $ 2,564 | $ 3,265 | |
Balance at the end | $ 3,265 | 1,181 | 1,803 | 2,285 |
Computer equipment [member] | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Balance at the beginning | 1,803 | 2,564 | 3,265 | |
Depreciation | (576) | (527) | (780) | (980) |
Movement in foreign exchange | (95) | 19 | ||
Balance at the end | $ 3,265 | $ 1,181 | $ 1,803 | $ 2,285 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CAD ($) |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |||||
Trade payables | $ 64,600 | $ 38,740 | |||
Accrued liabilities | 33,225 | 22,033 | |||
Total | $ 97,825 | $ 60,773 | $ 77,048 | $ 29,800 | $ 37,942 |
SHARE CAPITAL AND OTHER RESER_3
SHARE CAPITAL AND OTHER RESERVES - Share capital (Details) | 8 Months Ended | 12 Months Ended | |||
May 06, 2022 USD ($) $ / shares shares | Feb. 02, 2021 USD ($) shares | Dec. 31, 2020 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
SHARE CAPITAL AND OTHER RESERVES | |||||
Gross proceeds | $ 3,660,671 | $ 15,019,000 | |||
Total share issuance costs | $ 1,165,580 | ||||
Fair value of shares issued | $ 11,702 | ||||
IPO | |||||
SHARE CAPITAL AND OTHER RESERVES | |||||
Shares issued (in shares) | shares | 3,754,750 | ||||
Price per common share | $ / shares | $ 4 | ||||
Gross proceeds | $ 15,019,000 | ||||
Total share issuance costs | $ 1,165,580 | ||||
Number of warrants issued | shares | 262,833 | ||||
Property option payments | |||||
SHARE CAPITAL AND OTHER RESERVES | |||||
Shares issued (in shares) | shares | 5,000 | ||||
Fair value of shares issued | $ 11,702 |
SHARE CAPITAL AND OTHER RESER_4
SHARE CAPITAL AND OTHER RESERVES - Other reserves (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CAD ($) |
SHARE CAPITAL AND OTHER RESERVES | |||||
Other reserve - Share options | $ 1,781,096 | $ 1,624,053 | |||
Other reserve - Warrants | 263,596 | ||||
Other reserves | $ 2,044,692 | $ 1,624,053 | $ 2,100,550 | $ 1,624,053 | $ 2,100,550 |
SHARE CAPITAL AND OTHER RESER_5
SHARE CAPITAL AND OTHER RESERVES - Changes in Share options (Details) | 12 Months Ended | |
Dec. 31, 2022 Option $ / shares | Dec. 31, 2021 Option $ / shares | |
SHARE CAPITAL AND OTHER RESERVES | ||
Common shares reserved for issuance as a percentage of outstanding common shares | 10% | |
Maximum term of each share option | 10 years | |
Number of share options | ||
Balance beginning | Option | 716,663 | 716,663 |
Granted | Option | 460,003 | |
Expired | Option | (83,333) | |
Balance ending | Option | 1,093,333 | 716,663 |
Weighted average exercise price | ||
Balance beginning | $ / shares | $ 2.37 | $ 2.36 |
Granted | $ / shares | 0.92 | 0 |
Expired | $ / shares | 2.36 | 0 |
Balance ending | $ / shares | $ 1.67 | $ 2.37 |
SHARE CAPITAL AND OTHER RESER_6
SHARE CAPITAL AND OTHER RESERVES - Information about share options outstanding and exercisable (Details) | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2020 CAD ($) Option | Dec. 31, 2022 USD ($) Option $ / shares | Dec. 31, 2021 USD ($) Option | |
Information about share options outstanding and exercisable | |||
Share options outstanding, Number of share options outstanding | Option | 716,663 | 1,093,333 | 716,663 |
Share options outstanding, Weighted average years to expiry | 6 years 2 months 12 days | ||
Share options exercisable, Number of share options exercisable | Option | 748,324 | ||
Share options exercisable, Weighted average exercise price | $ 2.02 | ||
Total share-based compensation expense | $ | $ 157,043 | $ 0 | |
Total share-based compensation expense, expensed in the statement of loss | $ 1,807,450 | 162,628 | |
Total share-based compensation expense, capitalized to E&E assets | $ | 26,173 | ||
Share options | |||
Information about share options outstanding and exercisable | |||
Total share-based compensation expense, expensed in the statement of loss | $ | $ 130,870 | ||
Exercise price range $0.50 - $1.00 | |||
Information about share options outstanding and exercisable | |||
Share options outstanding, Number of share options outstanding | Option | 460,003 | ||
Share options outstanding, Weighted average years to expiry | 4 years 9 months 25 days | ||
Share options exercisable, Number of share options exercisable | Option | 114,994 | ||
Share options exercisable, Weighted average exercise price | $ 0.92 | ||
Exercise price range $0.50 - $1.00 | Minimum | |||
Information about share options outstanding and exercisable | |||
Share options outstanding, Exercise price | 0.50 | ||
Exercise price range $0.50 - $1.00 | Maximum | |||
Information about share options outstanding and exercisable | |||
Share options outstanding, Exercise price | $ 1 | ||
Exercise price range $0.50 - $1.00 | |||
Information about share options outstanding and exercisable | |||
Share options outstanding, Number of share options outstanding | Option | 633,330 | ||
Share options outstanding, Weighted average years to expiry | 7 years 2 months 12 days | ||
Share options exercisable, Number of share options exercisable | Option | 633,330 | ||
Share options exercisable, Weighted average exercise price | $ 2.22 | ||
Exercise price range $0.50 - $1.00 | Minimum | |||
Information about share options outstanding and exercisable | |||
Share options outstanding, Exercise price | 2.01 | ||
Exercise price range $0.50 - $1.00 | Maximum | |||
Information about share options outstanding and exercisable | |||
Share options outstanding, Exercise price | $ 2.50 |
SHARE CAPITAL AND OTHER RESER_7
SHARE CAPITAL AND OTHER RESERVES - Weighted average assumptions used to estimate the fair value of share options granted (Details) | 12 Months Ended |
Dec. 31, 2022 Y | |
SHARE CAPITAL AND OTHER RESERVES | |
Expected life | 5 |
Expected volatility | 143.18% |
Risk-free interest rate | 4.09% |
SHARE CAPITAL AND OTHER RESER_8
SHARE CAPITAL AND OTHER RESERVES - Warrants (Details) | 8 Months Ended | 12 Months Ended | ||
Nov. 01, 2022 $ / shares shares | May 06, 2022 USD ($) $ / shares shares | Dec. 31, 2020 CAD ($) | Dec. 31, 2022 USD ($) shares | |
SHARE CAPITAL AND OTHER RESERVES | ||||
Number of warrants, Outstanding, Ending balance | shares | 362,833 | |||
Warrant reserve, Ending balance | $ 263,596 | |||
Total share-based compensation expense, expensed in the statement of loss | $ 1,807,450 | $ 162,628 | ||
Warrants issued - IPO | ||||
SHARE CAPITAL AND OTHER RESERVES | ||||
Number of warrants, Transactions during the year : Warrants issued | shares | 262,833 | 262,833 | ||
Warrant reserve, Transactions during the year : Warrants issued | $ 238,217 | |||
Exercise price of warrants | $ / shares | $ 4.40 | |||
Fair value of warrants | $ 238,217 | |||
Warrants Issued - Consultants | ||||
SHARE CAPITAL AND OTHER RESERVES | ||||
Number of warrants, Transactions during the year : Warrants issued | shares | 100,000 | 100,000 | ||
Warrant reserve, Transactions during the year : Warrants issued | $ 25,379 | |||
Exercise price of warrants | $ / shares | $ 0.81 | |||
Total share-based compensation expense, expensed in the statement of loss | $ 26,480 |
SHARE CAPITAL AND OTHER RESER_9
SHARE CAPITAL AND OTHER RESERVES - Weighted average assumptions used to estimate the fair value of warrants issued (Details) | Dec. 31, 2022 Y |
Expected life | |
SHARE CAPITAL AND OTHER RESERVES | |
Significant unobservable input, liabilities | 1.91 |
Expected volatility | |
SHARE CAPITAL AND OTHER RESERVES | |
Significant unobservable input, liabilities | 1.0994 |
Risk-free interest rate | |
SHARE CAPITAL AND OTHER RESERVES | |
Significant unobservable input, liabilities | 0.0142 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Compensation (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Management and consulting fees | $ 559,591 | $ 12,206 | $ 6,000 | $ 2,000 |
Share-based compensation | 136,148 | 1,807,450 | ||
Directors' fees | 44,380 | |||
Total compensation | $ 740,119 | $ 12,206 | $ 15,300 | $ 1,809,450 |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Administrative expenses incurred on behalf of the company | $ 50,359 | $ 11,266 | |
Amounts payable and accrued to related parties | $ 7,568 | $ 0 | |
Number of shares held | 2,231,000 | 2,231,000 | 2,500,000 |
P2 Gold Inc | |||
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Amount of services under CFO shared-services agreement | $ 21,149 | $ 0 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Accounts payable and accrued liabilities | $ (37,130) | |
Share-based compensation | 26,173 | |
Common shares issued | $ 11,702 | |
Total | $ (10,957) | $ 11,702 |
FINANCIAL RISK MANAGEMENT - Mar
FINANCIAL RISK MANAGEMENT - Market risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Currency risk | ||
FINANCIAL RISK MANAGEMENT | ||
Impact on pre-tax loss in exchange rate on financial assets and liabilities | 10% | 10% |
Percentage of increase on impact of currency rate change on pre-tax loss 10% | 10% | |
Percentage of decrease on impact of currency rate change on pre-tax loss 10% | 10% | |
Currency risk | Cash and cash equivalents | ||
FINANCIAL RISK MANAGEMENT | ||
Impact of currency rate change on pre-tax loss 10% increase | $ 11,629 | |
Impact of currency rate change on pre-tax loss 10% decrease | (11,629) | |
Currency risk | Receivables and other | ||
FINANCIAL RISK MANAGEMENT | ||
Impact of currency rate change on pre-tax loss 10% increase | 16,098 | |
Impact of currency rate change on pre-tax loss 10% decrease | (16,098) | |
Currency risk | Marketable securities | ||
FINANCIAL RISK MANAGEMENT | ||
Impact of currency rate change on pre-tax loss 10% increase | 1,647 | |
Impact of currency rate change on pre-tax loss 10% decrease | (1,647) | |
Currency risk | Accounts payable and accrued liabilities | ||
FINANCIAL RISK MANAGEMENT | ||
Impact of currency rate change on pre-tax loss 10% increase | (5,234) | |
Impact of currency rate change on pre-tax loss 10% decrease | $ 5,234 | |
Interest rate risk | ||
FINANCIAL RISK MANAGEMENT | ||
Impact on pre-tax loss in exchange rate on financial assets and liabilities | 1% |
FINANCIAL RISK MANAGEMENT - Cre
FINANCIAL RISK MANAGEMENT - Credit risk (Details) - Credit risk [member] | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) |
FINANCIAL RISK MANAGEMENT | ||||
Maximum credit exposure | $ 12,279,702 | $ 1,094,550 | $ 1,387,670 | $ 2,421,796 |
Cash and cash equivalents | ||||
FINANCIAL RISK MANAGEMENT | ||||
Maximum credit exposure | 630,623 | $ 1,094,550 | ||
Short-term investments | ||||
FINANCIAL RISK MANAGEMENT | ||||
Maximum credit exposure | $ 11,649,079 |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - Liquidity Risk | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) |
FINANCIAL RISK MANAGEMENT | ||
Accounts payable and accrued liabilities, carrying amount | $ 97,825 | $ 77,048 |
Accounts payable and accrued liabilities, contractual cash flows | 97,825 | 77,048 |
Total, carrying amount | 97,825 | 77,408 |
Total, contractual cash flows | 97,825 | 77,048 |
Due within 1 year | ||
FINANCIAL RISK MANAGEMENT | ||
Accounts payable and accrued liabilities, carrying amount | 97,825 | 77,048 |
Total, carrying amount | $ 97,825 | $ 77,048 |
FINANCIAL RISK MANAGEMENT - Fai
FINANCIAL RISK MANAGEMENT - Fair value estimation (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Level 1 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, fair value | $ 16,472 | $ 193,572 |
Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, fair value | 1 | 3,275 |
FVTPL | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, fair value | 16,473 | 196,847 |
Amortized cost | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, fair value | 12,279,702 | 1,094,550 |
Cash and cash equivalents | Amortized cost | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, carrying value | 630,623 | 1,094,550 |
Short-term investments | Amortized cost | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, carrying value | 11,649,079 | |
Marketable securities | Level 1 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, carrying value | 16,472 | 193,572 |
Marketable securities | Level 3 | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, carrying value | 1 | 3,275 |
Marketable securities | FVTPL | ||
FINANCIAL RISK MANAGEMENT | ||
Financial assets, carrying value | $ 16,473 | $ 196,847 |
TAXATION - Deferred income taxe
TAXATION - Deferred income taxes (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) |
TAXATION | ||||
Deferred income taxes not recognized | $ (694,982) | $ (141,580) | $ (181,617) | $ (72,723) |
Tax losses in Canada | 1,191,205 | 375,315 | ||
Temporary differences [member] | ||||
TAXATION | ||||
Tax losses in Canada | 475,875 | |||
Non-capital loss carry-forwards | ||||
TAXATION | ||||
Deferred income taxes not recognized | (128,486) | (53,142) | ||
Tax loss carry forwards | ||||
TAXATION | ||||
Deferred income taxes | 332,184 | 99,672 | ||
Share issuance costs | ||||
TAXATION | ||||
Deferred income taxes | 288,230 | |||
Marketable securities and others | ||||
TAXATION | ||||
Deferred income taxes not recognized | $ (53,131) | $ (19,581) | ||
Deferred income taxes | $ 74,568 | $ 41,908 |
TAXATION - Income tax recovery
TAXATION - Income tax recovery (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
TAXATION | |||
Expected income tax recovery | $ (288,466) | $ (108,298) | |
Share issuance costs | (298,176) | ||
Impact of difference in tax rates and other | (10,670) | 21,425 | |
Share-based compensation | 43,910 | ||
Deferred income taxes not recognized | $ 553,402 | $ 86,873 | |
Income tax rate | 27% | 27% | 27% |
USA | |||
TAXATION | |||
Income tax rate | 21% | 21% | |
Nevada | |||
TAXATION | |||
Income tax rate | 0% | 0% |
COMMITMENTS (Details)
COMMITMENTS (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Within 15 days of acquisition | |
Commitments | |
Introductory agent fee paid | $ 5,000 |
6 months after acquisition | |
Commitments | |
Introductory agent fee paid | 5,000 |
12 months after acquisition | |
Commitments | |
Introductory agent fee paid | 5,000 |
18 months after acquisition | |
Commitments | |
Introductory agent fee paid | 5,000 |
24 months after acquisition | |
Commitments | |
Introductory agent fee paid | 7,500 |
30 months after acquisition | |
Commitments | |
Introductory agent fee paid | 7,500 |
36 months after acquisition | |
Commitments | |
Introductory agent fee paid | 10,000 |
42 months after acquisition | |
Commitments | |
Introductory agent fee paid | 10,000 |
48 months after acquisition and every six months thereafter | |
Commitments | |
Introductory agent fee paid | $ 15,000 |
COMMITMENTS - Additional Inform
COMMITMENTS - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
COMMITMENTS | |
Net smelter return royalty | 0.50% |
Introductory agent fees and net smelter return royalty payments to reduce net smelter return royalty | $ 1,000,000 |
Decrease in net smelter return royalty | 50% |
Net smelter return royalty after reduction | 0.25% |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) |
Current assets | ||
Cash | $ 1,387,670 | $ 2,421,796 |
GST receivable | 11,430 | 3,133 |
Prepaid expenses | 4,719 | 624 |
Total current assets | 1,403,819 | 2,425,553 |
Non-current assets | ||
Exploration and evaluation ("E&E") assets | 1,632,043 | 875,371 |
Marketable securities | 249,562 | 426,109 |
Fixed assets | 2,285 | 3,265 |
Total non-current assets | 1,883,890 | 1,304,745 |
Total assets | 3,287,709 | 3,730,298 |
Current liabilities | ||
Amounts payable and accrued liabilities | 77,048 | 37,942 |
Total liabilities | 77,048 | 37,942 |
EQUITY | ||
Share capital | 3,689,258 | 3,674,258 |
Other reserves | 2,100,550 | 2,100,550 |
Accumulated other comprehensive loss | (6,119) | (12,203) |
Deficit | (2,573,028) | (2,070,249) |
Total equity | 3,210,661 | 3,692,356 |
Total liabilities and shareholders' equity | $ 3,287,709 | $ 3,730,298 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss | 8 Months Ended | 12 Months Ended |
Dec. 31, 2020 CAD ($) $ / shares shares | Dec. 31, 2021 CAD ($) $ / shares shares | |
Expenses | ||
Consulting and management fees | $ 22,169 | $ 23,001 |
Depreciation | 576 | 980 |
Foreign exchange loss | $ | 66,665 | 12,060 |
General and administrative | 6,065 | 16,109 |
Insurance | 9,272 | |
Investor relations | 2,152 | 2,597 |
Listing and filing fees | 569 | 11,357 |
Marketing | 7,762 | 3,268 |
Professional fees | 82,950 | 296,013 |
Share-based compensation | 1,807,450 | |
Operating loss | 1,996,358 | 374,657 |
Realized gain on marketable securities | (8,075) | |
Unrealized loss on marketable securities | $ | 73,891 | 136,197 |
Net loss for the year | 2,070,249 | 502,779 |
Items that may be reclassified to net loss: | ||
Foreign currency translation (income)/ loss | 12,203 | (6,084) |
Comprehensive loss for the year | $ 2,082,452 | $ 496,695 |
Net loss per common share | ||
Basic | (per share) | $ (0.24) | $ (0.05) |
Fully diluted | (per share) | $ (0.24) | $ (0.05) |
Weighted average number of common shares outstanding | ||
Basic | shares | 8,541,811 | 9,516,560 |
Fully diluted | shares | 8,541,811 | 9,516,560 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity | Share Capital Issuance of founders shares at US$0.015 per common share CAD ($) shares | Share Capital Private placement at US$0.30 per common share CAD ($) shares | Share Capital Private placement at US$0.75 per common share CAD ($) shares | Share Capital Private placement at $1.05 per common share CAD ($) shares | Share Capital Private placement at $3.00 per common share CAD ($) shares | Share Capital Issuance of share capital per lease agreement CAD ($) shares | Share Capital CAD ($) shares | Share Capital USD ($) shares | Option Reserves CAD ($) | Accumulated other comprehensive loss CAD ($) | Accumulated other comprehensive loss USD ($) | Deficit CAD ($) | Deficit USD ($) | Issuance of founders shares at US$0.015 per common share CAD ($) | Private placement at US$0.30 per common share CAD ($) | Private placement at US$0.75 per common share CAD ($) | Private placement at $1.05 per common share CAD ($) | Private placement at $3.00 per common share CAD ($) | Issuance of share capital per lease agreement CAD ($) | CAD ($) shares | USD ($) shares |
Balance beginning at Apr. 20, 2020 | |||||||||||||||||||||
Balance beginning (in shares) at Apr. 20, 2020 | shares | |||||||||||||||||||||
Shares issued | $ 139,290 | $ 441,853 | $ 949,366 | $ 140,000 | $ 2,000,000 | $ 13,587 | $ 139,290 | $ 441,853 | $ 949,366 | $ 140,000 | $ 2,000,000 | $ 13,587 | |||||||||
Issuance of shares (in shares) | shares | 6,666,668 | 1,083,333 | 928,666 | 133,333 | 666,667 | 33,333 | |||||||||||||||
Share issue costs | $ (9,838) | (9,838) | |||||||||||||||||||
Value assigned to options granted | 2,100,550 | 2,100,550 | |||||||||||||||||||
Net loss and comprehensive loss for the period | (12,203) | (2,070,249) | (2,082,452) | ||||||||||||||||||
Balance ending at Dec. 31, 2020 | $ 3,674,258 | $ 2,703,053 | 2,100,550 | (12,203) | $ 122,511 | (2,070,249) | $ (1,550,355) | $ 3,692,356 | $ 2,899,262 | ||||||||||||
Balance ending (in shares) at Dec. 31, 2020 | shares | 9,512,000 | 9,512,000 | 9,512,000 | 9,512,000 | |||||||||||||||||
Shares issued | $ 15,000 | $ 11,702 | $ 15,000 | $ 11,702 | |||||||||||||||||
Issuance of shares (in shares) | shares | 5,000 | ||||||||||||||||||||
Net loss and comprehensive loss for the period | 6,084 | (502,779) | $ (496,695) | (379,644) | |||||||||||||||||
Balance ending at Dec. 31, 2021 | $ 3,689,258 | $ 2,714,755 | $ 2,100,550 | $ (6,119) | 143,972 | $ (2,573,028) | (1,951,460) | $ 3,210,661 | $ 2,531,320 | ||||||||||||
Balance ending (in shares) at Dec. 31, 2021 | shares | 9,517,000 | 9,517,000 | 9,517,000 | 9,517,000 | |||||||||||||||||
Share issue costs | $ (1,403,797) | $ (1,165,580) | |||||||||||||||||||
Value assigned to options granted | 182,422 | ||||||||||||||||||||
Net loss and comprehensive loss for the period | (1,787,312) | ||||||||||||||||||||
Balance ending at Dec. 31, 2022 | $ 16,329,958 | $ (574,949) | $ (3,019,851) | $ 14,779,850 | |||||||||||||||||
Balance ending (in shares) at Dec. 31, 2022 | shares | 13,271,750 | 13,271,750 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows | 8 Months Ended | 12 Months Ended |
Dec. 31, 2020 CAD ($) | Dec. 31, 2021 CAD ($) | |
Cash flows used in operating activities | ||
Net loss for the year | $ (2,070,249) | $ (502,779) |
Items not affecting cash: | ||
Depreciation | 576 | 980 |
Foreign exchange loss | 10,867 | 2,904 |
Unrealized loss on marketable securities | 73,891 | 136,197 |
Realized gain on marketable securities | (8,075) | |
Share-based compensation | 1,807,450 | |
Total items not affecting cash | (177,465) | (370,773) |
Changes in non-cash operating working capital: | ||
Increase in prepaid expenses | (624) | (4,035) |
Increase in GST receivable | (3,133) | (8,297) |
Increase in accounts payable and accrued liabilities | 33,784 | 39,470 |
Net cash used in operating activities | (147,438) | (343,635) |
Cash flows used in investing activities | ||
Purchase of fixed assets | (3,841) | |
Payment for marketable securities | (500,000) | |
Proceeds from sale of marketable securities | 48,425 | |
Payments for mineral property activities | (587,596) | (738,916) |
Net cash used in investing activities | (1,091,437) | (690,491) |
Cash flows from financing activities | ||
Gross proceeds | 3,660,671 | |
Net cash generated by financing activities | 3,660,671 | |
Decrease in cash and cash equivalents for the year | 2,421,796 | (1,034,126) |
Cash and cash equivalents, beginning of year | 2,421,796 | |
Cash and cash equivalents, end of year | 2,421,796 | 1,387,670 |
Non-cash investing and financing activities: | ||
Common shares issued for exploration and evaluation assets | 13,587 | $ 15,000 |
Share-based compensation capitalized to exploration and evaluation assets | $ 293,100 |
NATURE OF OPERATION
NATURE OF OPERATION | 12 Months Ended |
Dec. 31, 2021 | |
NATURE OF OPERATIONS | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Austin Gold Corp. together with its subsidiary, Austin American Corporation (collectively referred to as the “Company” or “Austin Gold”), is focused on the exploration and evaluation of mineral property interests in the state of Nevada, United States. The Company is in the process of filing a prospectus in British Columbia and a registration statement with the Securities and Exchange Commission in the United States of America. The Company was incorporated on April 21, 2020 in British Columbia. The Company’s registered office is at MNP Tower, 1021 West Hastings Street, 9th Floor, Vancouver, BC, Canada. All amounts are expressed in Canadian dollars, except for certain amounts denoted in United States dollars (“US$”). The Company has not yet determined whether its exploration and evaluation assets contain mineral reserves that are economically recoverable. The recoverability of the amounts shown for exploration and evaluation assets is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development of those reserves, and upon future profitable production. To date, the Company has not earned any revenues and is considered to be in the exploration stage. These consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of consolidation These consolidated financial statements include the financial statements of the Company and the entity controlled by the Company, its subsidiary, listed in the following table: Place of Proportion of Name of subsidiary incorporation ownership interest Principal activity Austin American Corporation (“Austin NV”) Nevada, USA 100 % Holds interests in exploration projects 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give the Company the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50 % of the voting rights or currently exercisable potential voting rights of a subsidiary’s share capital. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. (b) Foreign currency translation Functional currency Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). For the parent entity, with the completion of the IPO on the NYSE American stock exchange, future equity financings are expected to generate proceeds denominated in United States dollars (“USD”). In addition, E&E expenditures and administrative costs incurred to conduct business activities are primarily denominated in USD. As a result of these changes in underlying transactions, events and circumstances, the functional currency of the parent entity was reassessed. The functional currency of the parent entity changed from the Canadian dollar (“CAD” or “C$”) to the USD commencing on December 31, 2022. The change in functional currency was accounted for on a prospective basis, with no impact of this change on prior year comparative information. The functional currency of the Company’s subsidiary remains the USD. Presentation currency On December 31, 2022, the Company elected to change its presentation currency from CAD to USD. The change in presentation currency is to better reflect the Company’s business activities and to improve investors’ ability to compare the Company’s financial results with other USA listed businesses in the mining industry. The Company applied the change to USD presentation currency retrospectively and restated the comparative financial information as if the new presentation currency had always been the Company’s presentation currency. From December 31, 2022, the USD presentation currency is consistent with the functional currency of the Company. For periods prior to December 31, 2022, the statements of financial position for each period presented have been translated from the CAD functional currency to the USD presentation currency at the rate of exchange prevailing at the respective financial position date with the exception of equity items which have been translated at accumulated historical rates from the Company’s date of incorporation in 2020. The statements of loss and comprehensive loss were translated at the average exchange rates for the reporting period, or at the exchange rate prevailing at the date of transactions. Exchange differences arising on translation from the CAD functional currency to the USD presentation currency prior to the change in functional currency to USD, have been recognized in other comprehensive income (loss) and accumulated as a separate component of equity. Transactions and balances Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses result from the settlement of foreign currency transactions and from the translation of monetary assets and liabilities denominated in currencies other than an entity’s functional currency. These gains (losses) are recognized in the statement of loss and comprehensive loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the date of the initial transactions. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) (c) Financial instruments Financial instruments – Classification Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or fair value through other comprehensive income (“FVOCI”). The classification depends on the Company’s business model for managing the financial assets and the contractual terms which give rise to the cash flows. For assets measured at fair value, gains (losses) will either be recorded in earnings (loss) or other comprehensive income (“OCI”). For investments in debt instruments, this will depend on the business model for which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI. The Company reclassifies debt investments when, and only when, its business model for managing those assets changes. Financial instruments – Measurement At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in the statement of loss and comprehensive loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments: ● Amortized cost – Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method. ● FVOCI – Assets that are held for collection of contractual cash flows and for selling the financial assets, where those cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance expense using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange gain (loss) and impairment expenses in other expenses. ● FVTPL – Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of loss and comprehensive loss within other gains (losses) in the period in which it arises. Changes in the fair value of financial assets at FVTPL are recognized in gain (loss) on change in fair value of financial instruments in the statement of loss and comprehensive loss as applicable. Financial instruments - Impairment An expected credit loss (“ECL”) impairment model applies which requires a loss allowance to be recognized based on ECLs. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in earnings (loss) for the period. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through earnings (loss) to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Financial instruments - Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of loss and comprehensive loss. Cash and cash equivalents Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Cash and cash equivalents are classified at amortized cost. Interest and finance income is recognized by applying the effective interest rate method. Short-term investments Short-term investments comprise term deposits and redeemable short-term investment certificates (“RSTICs”) held at major financial institutions with an original maturity date between three and twelve months. Short-term investments are classified at amortized cost. Interest and finance income is recognized by applying the effective interest rate method. Marketable securities Marketable securities comprise of common shares of publicly traded companies. Marketable securities are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Changes in fair value at each reporting date are included in the statement of loss and comprehensive loss as gain (loss) on marketable securities. Accounts payable and accrued liabilities Accounts payable and accrued liabilities are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method. Derivative liabilities Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date. Changes in fair value at each reporting date are included in the statement of loss and comprehensive loss as gain (loss) on change in fair value of derivative liability. (d) Property and equipment Property and equipment is measured at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated future cost of dismantling and removing the asset at the end of its useful life. The purchase price or construction cost is the fair value of consideration to acquire the asset. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Depreciation of property and equipment commences when the asset has been fully commissioned and is available for its intended use. Depreciation is calculated using declining balance rates ranging from 15% to 30% per annum or the straight-line method to allocate cost over the estimated useful lives. Depreciation on assets that are directly related to E&E assets are allocated to that E&E asset. Depreciation methods and estimated useful lives and residual values are reviewed annually and when facts and circumstances indicate that a review should be performed. Changes in estimates are accounted for prospectively. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain (loss) arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the statement of loss and comprehensive loss. (e) Mineral properties Mineral properties are measured at cost less accumulated depletion and accumulated impairment losses. Mineral properties include the fair value attributable to mineral reserves and mineral resources acquired in a business combination or asset acquisition, mine development costs and previously capitalized E&E expenditures. Upon commencement of production, a mineral property is depleted using the unit-of-production method. Unit-of-production depletion rates are determined using mineral units mined over the estimated proven and probable mineral reserves of the mine. (f) E&E assets All E&E expenditures are capitalized, including the costs of acquiring exploration stage properties, except for E&E expenditures incurred before the Company has obtained legal rights to explore an area, which are expensed. Exploration expenditures are costs incurred in the initial search for mineral deposits with economic potential or in the process of obtaining more information about existing mineral deposits. Exploration expenditures typically include costs associated with prospecting, sampling, mapping, drilling and other work involved in searching for Mineral Resources, as defined by Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Evaluation expenditures are the costs incurred to establish the technical feasibility and commercial viability of developing mineral deposits identified through exploration activities, business combinations or asset acquisitions. Evaluation expenditures include the cost of: (i) further defining the volume and grade of deposits through drilling of core samples and other sampling techniques, trenching and sampling activities in an ore body or other forms or data acquisition; (ii) determining the optimal methods of extraction and metallurgical and treatment processes; (iii) studies related to surveying, transportation and infrastructure requirements; (iv) permitting activities; and (v) economic evaluations to determine whether development or mineralized material is commercially justified including preliminary economic assessments (“PEA”), pre-feasibility and final feasibility studies. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Once the technical feasibility and commercial viability of the extraction of mineral reserves or mineral resources from a particular mineral property has been determined, expenditures are tested for impairment and reclassified to mineral properties. The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, including: ● The extent to which mineral reserves and mineral resources as defined by NI 43-101 have been identified through a feasibility study or similar document; ● The results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study; ● The status of environmental permits; and ● The status of mining leases or permits. (g) Impairment of non-financial assets The carrying amounts of assets included in E&E assets and property and equipment are assessed for impairment at the end of each reporting period or whenever facts and circumstances suggest that the carrying amounts may not be recoverable. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash generating unit (“CGU”) to which the asset belongs is determined. The recoverable amount of an asset or CGU is determined as the higher of its fair value less costs of disposal and its value in use. An impairment loss exists if the asset’s or CGU’s carrying amount exceeds the recoverable amount and is recorded as an expense immediately. Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. Future cash flows are estimated using the following significant assumptions: mineral reserves and mineral resources, production profile, operating costs, capital costs, commodity prices, foreign exchange rates and discount rates. All inputs used are those that an independent market participant would consider appropriate. Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit for which estimates of future cash flows have not been adjusted. Tangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior periods. A reversal of an impairment loss is recognized into earnings (loss) immediately. (h) Decommissioning and restoration provision Decommissioning and restoration provisions are recognized when there is a significant disturbance to the areas in which E&E activities have occurred and when the provision can be estimated reliably. Decommissioning and restoration costs are estimated and discounted to their net present value and capitalized to the carrying amount of the related asset along with the recording of a corresponding liability, as soon as the obligation to incur such costs arises. The discount rate used to calculate the net present value is a pre-tax rate of similar maturity that reflects current market assessments of time value of money and the risks specific to the liability. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Each period, the Company reviews cost estimates and other assumptions used in the valuation of the provision to reflect events, changes in circumstances and new information available. The liability is adjusted each reporting period for the unwinding of the discount, changes to the current market-based discount rate and for the amount or timing of the underlying cash flows needed to settle the provision. (i) Income taxes Income tax is recognized in the statement of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable earnings. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates at the end of the reporting year applicable to the year of expected realization. A deferred tax asset is recognized only to the extent that it is probable that future taxable earnings will be available against which the asset can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, when they relate to income taxes levied by the same taxation authority and when the Company intends to settle its current tax assets and liabilities on a net basis. (j) Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares, share options and warrants are recognized as a deduction from equity, net of any tax effects. If common shares are issued as consideration for the acquisition of a mineral project, the common shares are measured at their fair value based on the quoted share price of the Company on the date the transaction is executed. The Company applies the residual value method with respect to the measurement of common shares and warrants issued as a unit for a private placement. The residual value method first allocates value to the more easily measurable component based on fair value (i.e. common shares) and then the residual value, if any, to the less measurable component (i.e. warrants). Any value attributed to the warrants is recorded to other reserves in equity. (k) Share-based payment transactions Share options granted under the Company’s equity settled share-based option plan are measured at fair value at the date of grant and recognized as an expense with a corresponding increase to other reserves in equity. An individual is classified as an employee when the individual is an employee for legal and tax purposes (direct employee) or provides services similar to those performed by a direct employee. Equity settled share-based payment transactions with non-employees are measured at the fair value of the goods or services received. However, if the fair value cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instrument granted at the date the non-employee provides the goods or the services. Fair value is determined using the Black-Scholes option pricing model, which relies on estimates of the risk-free interest rate, expected share price volatility, future dividend payments and the expected average life of the options. The fair value determined at the grant date is recognized as an expense over the vesting period in accordance with the vesting terms and conditions (graded vesting method), with a corresponding increase to other reserves in equity. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) When share options are exercised, the applicable amounts of other reserves are transferred to share capital. (l) Loss per share The Company presents loss per share data, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted loss per share is determined by adjusting the loss attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive common shares, including share options and warrants. (m) Related party transactions Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction where there is a transfer of resources or obligations between related parties. | 2. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently by the Company and its wholly-owned subsidiary and to the period presented in these consolidated financial statements. a. Basis of presentation Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Board of Directors of the Company approved these consolidated financial statements and authorized them for issue on March 15, 2022. Basis of Measurement These consolidated financial statements of the Company have been prepared on an accrual basis, and are based on historical costs, except for financial instruments measured at fair value. Functional and Presentation Currency These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. The subsidiary’s functional currency is United States dollars. All financial information is expressed in Canadian dollars unless otherwise stated and has been rounded to the nearest dollar. 2. SIGNIFICANT ACCOUNTING POLICIES, continued b. Basis of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Austin American Corporation (“Austin NV”), from the Company’s incorporation on April 21, 2020. All significant intercompany accounts and transactions between the Company and its subsidiary have been eliminated upon consolidation. Proportion of Place of Ownership Name of Subsidiary Incorporation Interest Principal Activity Austin American Corporation Nevada, United States 100 % Exploration company c. Use of estimates and judgements The preparation of these consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from management’s best estimates as additional information becomes available. Significant areas requiring the use of management estimates and judgments include: i) The determination of the fair value of the shares of the Company for the calculation of the share-based compensation. ii) The determination of the fair values of warrants held as marketable securities by the Company. iii) The assessment of the Company’s ability to continue as a going concern involves judgment regarding future funding available to identify new business opportunities and working capital requirements, the outcome of which is uncertain. iv) The determination that exploration, evaluation, and related costs incurred which were capitalized may have future economic benefits and may be economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including: geologic and other technical information, a history of conversion of mineral deposits with similar characteristics to its own properties to proven and probable mineral reserves, the quality and capacity of existing infrastructure facilities, evaluation of permitting and environmental issues and local support for the project. v) The measurement of deferred income tax assets and liabilities. d. Financial instruments Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives). 2. SIGNIFICANT ACCOUNTING POLICIES, continued d. Financial instruments, continued Measurement Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. The Company’s accounts payables are classified at amortized cost. Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in consolidated statements of comprehensive income (loss). Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in profit or loss. The Company’s cash and marketable securities are classified as FVTPL. Financial assets at FVTOCI are initially recorded at fair value adjusted for transaction costs. Dividends are recognized as income in the consolidated statements of comprehensive income (loss) unless the dividend clearly represents a recovery of part of the cost of the investment. Gains or losses recognized on the sale of FVOTCI investment are recognized in other comprehensive income (loss) and are never reclassified to profit or loss. Impairment An ‘expected credit loss’ impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive income (loss). e. Cash and cash equivalents Cash and cash equivalents include cash in banks and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. 2. SIGNIFICANT ACCOUNTING POLICIES, continued f. Property, plant and equipment Property, plant and equipment, reported herein as fixed assets, are carried at cost, less accumulated amortization and accumulated impairment losses. Cost comprises the fair value of consideration given to acquire an asset and includes the direct expenditures associated with bringing the asset to the location and condition necessary for putting it into use along with the future cost of dismantling and removing the asset. When parts of an item of fixed assets have different useful lives, they are accounted for as separate items (major components) of fixed assets. Amortization is calculated over the useful life of the asset at rates ranging from 15% to 30% per annum once the asset is available for use. Amortization charges on assets that are directly related to mineral properties are allocated to that mineral property. g. Foreign currencies Transactions in currencies other than the functional currency are recorded at the rate of exchange prevailing on the dates of transactions. Monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at each reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign currency translation differences are recognized in profit or loss, except for differences on the retranslation of fair value through other comprehensive income (FVTOCI) instruments, which are recognized in other comprehensive (income)/ loss. h. Mineral property interests Expenditures on mineral exploration or evaluation incurred in respect of a property before the acquisition of a license to explore are expensed as incurred, to general exploration. Once the legal rights to explore a specific area have been obtained, expenditures on exploration and evaluation activities are capitalized as exploration and evaluation assets. Mineral property acquisition costs are included in exploration and evaluation and include any cash consideration and advance royalties paid, and the fair market value of shares issued, if any, on the acquisition of the mineral property interest. Properties acquired under option agreements, whereby payments are made at the sole discretion of the Company, are recorded in the accounts when the payments are made. Exploration expenditures relate to the initial search for deposits with economic potential and to detailed assessments of deposits or other projects that have been identified as having economic potential. All capitalized exploration and evaluation expenditures are monitored for indications of impairment. Where a potential impairment is indicated, assessments are performed for each area of interest. Once an economically viable reserve has been determined for an area and the decision to proceed with development has been approved, exploration and evaluation assets attributable to that area are first tested for impairment and then reclassified to property, plant and equipment. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers, or title may be affected by undetected defects. 2. SIGNIFICANT ACCOUNTING POLICIES, continued i. Impairment of non-current assets At each reporting period, management reviews mineral interest and property, plant and equipment for indicators of impairment. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction. In assessing value in use, the estimated future cash flows are discounted to their present value. If the recoverable amount of the asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in the profit or loss for that period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which that asset belongs. Past impairments are also considered at each reporting period and where there is an indication that an impairment loss may have decreased, the recoverable amount is calculated as outlined above to determine the extent of the recovery. If the recoverable amount of the asset is more than its carrying amount, the carrying amount of the asset is increased to its recoverable amount and the impairment loss is reversed in the profit or loss for that period. The increased carrying amount due to reversal will not be more than what the depreciated historical cost would have been if the impairment had not been recognized. j. Decommissioning obligations The Company recognizes liabilities for statutory, contractual, legal or constructive obligations associated with the retirement of property, plant and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. Initially, a provision for a decommissioning obligation is recognized at its net present value in the period in which it is incurred, using a discounted cash flow technique with market-based risk-free discount rates and estimates of the timing and amount of the settlement of the obligation. Upon initial recognition of the liability, the corresponding decommissioning cost is added to the carrying amount of the related asset. Following initial recognition of the decommissioning obligation, the carrying amount of the liability is increased for the passage of time and adjusted for changes to significant estimates including the current discount rate, the amount or timing of the underlying cash flows needed to settle the obligation and the requirements of the relevant legal and regulatory framework. Subsequent changes in the provisions resulting from new disturbance, updated cost estimates, changes to estimated lives of operations and revisions to discount rates are also capitalized to the related asset. Amounts capitalized are depreciated over the lives of the assets to which they relate. The amortization or unwinding of the discount applied in establishing the net present value of provisions is charged to expense and is included within finance costs in the consolidated statement of comprehensive loss. k. Other provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of past events, and it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. l. Taxation Income tax expense is comprised of current and deferred tax. Current tax and deferred taxes are recognized in the consolidated statements of comprehensive income (loss) except to the extent that they relate to items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date. 2. SIGNIFICANT ACCOUNTING POLICIES, continued l. Taxation, continued Deferred tax is recognized in respect of unused tax losses and credits, as well as temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on enacted or substantively enacted laws at the reporting date. The Company computes the provision for deferred income taxes under the liability method. A deferred tax asset is recognized for unused tax losses, tax credits, and deductible temporary differences, only to the extent that it is probable that future taxable profits will be available against which they can be utilized. Where applicable, the probability of utilizing tax losses or credits is evaluated by considering risks relevant to future cash flows and the expiry dates after which these losses or credits can no longer be utilized. Deferred tax is not recognized for the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries, associates and joint arrangements to the extent that it is probable that they will not reverse in the foreseeable future. The Company is subject to assessments by various taxation authorities, who may interpret tax legislation differently from the Company. The final amount of taxes to be paid depends on a number of factors, including the outcomes of audits, appeals, or negotiated settlements. Such differences are accounted for based on management’s best estimate of the probable outcome of these matters. The Company must make significant estimates and judgments in respect of its provision for income taxes and the composition and measurement of its deferred income tax assets and liabilities. The Company’s operations are, in part, subject to foreign tax laws where interpretations, regulations and legislation are complex and continually changing. As a result, there are usually some tax matters in question that may, upon resolution in the future, result in adjustments to the amount of deferred income tax assets and liabilities; those adjustments may be material. m. Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the more easily measurable component based on fair value and then the residual value, if any, to the less measurable component. The Company considers the fair value of common shares issued in a unit private placement to be the more easily measurable component. The balance, if any, is allocated to the attached warrants. Any value attributed to the warrants is recorded as reserves. 2. SIGNIFICANT ACCOUNTING POLICIES, continued n. Share-based compensation The Company’s stock option plan allows the Company’s directors, officers, employees, and consultants to acquire shares of the Company. The fair value of options granted is recognized as share-based compensation expense or capitalized to mineral interests with a corresponding increase in share-based payment reserves. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Where options are subject to vesting, each vesting tranche is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the grant date using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted. Share-based compensation expense is recognized over the tranche’s vesting period by a charge to profit or loss. For employees, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Compensation expense for share options granted to non-employees is recognized over the contract services period or, if none exists, from the date of grant until the options vest. Compensation associated with unvested options granted to non-employees is re-measured on each statement of financial position date. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of options that are expected to vest. In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, or where the fair value of goods or services received is not reliably measurable, they are measured at the fair value of the share-based compensation. Otherwise, share-based compensation is measured at the fair value of goods or services received. o. Loss per share Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average common shares outstanding are increased to include additional shares for the assumed exercise of share options and share purchase warrants, if dilutive. The number of additional common shares is calculated by assuming that outstanding share options and share purchase warrants were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting periods. p. Related party transactions Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction where there is a transfer of resources or obligations between related parties. q. Adoption of new accounting standards, interpretations and amendments The Company has performed an assessment of new standards issued by the IASB that are not yet effective. The Company has assessed that the impact of adopting these accounting standards on its financial statements would not be significant |
MARKETABLE SECURITIES_2
MARKETABLE SECURITIES | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
MARKETABLE SECURITIES | ||
MARKETABLE SECURITIES | 8. MARKETABLE SECURITIES As at December 31, 2022, the Company holds 2,231,000 common shares (2021 – 2,231,000 ) and 1,250,000 warrants (2021 – 1,250,000 ) in Nevada Exploration Inc. (“NGE”). A continuity of the marketable securities is as follows: December 31, December 31, 2022 2021 Opening balance $ 196,847 $ 334,676 Realized gain on sale of marketable securities — 6,443 Proceeds from disposition of marketable securities — (38,632) Foreign exchange movements (5,740) 3,013 Unrealized fair value loss on marketable securities (174,634) (108,653) Ending balance $ 16,473 $ 196,847 As at December 31, 2022, the estimated fair value of the warrants in NGE was $1 (2021 – $3,275 ) determined using the Black-Scholes pricing model using the following assumptions: December 31, December 31, 2022 2021 Share price C$ 0.01 C$ 0.11 Exercise price C$ 0.50 C$ 0.50 Expected life 0.02 years 1.02 years Expected volatility 93.10 % 86.99 % Risk-free interest rate 4.30 % 0.25 % Expected dividend yield Nil Nil Subsequent to December 31, 2022, on January 7, 2023, the warrants in NGE expired in accordance with the terms of the private placement. | 3. MARKETABLE SECURITIES The Company holds all marketable securities in an account with a Canadian broker. Pursuant to a letter of intent with Nevada Exploration (see note 4a), on July 7, 2020 the Company participated in a private placement with Nevada Exploration Inc. purchasing 2,500,000 units at $0.20 per unit for a cost of $500,000 . Each unit consists of one common share, and one -half of one warrant, with each whole warrant entitling the Company to acquire one additional common share at a price of $0.50 per whole warrant for a period of 30 months following closing; provided that if either (or both) of the volume weighted average price or the closing price (or closing bid price on days when there are no trades) of the common shares of Nevada Exploration traded (or quoted) on the TSX-V is greater than $0.90 per share for 10 consecutive trading days, then Nevada Exploration shall have the right to accelerate the warrant expiry date to the 30 th day after the date on which Nevada Exploration gives notice to the Company in accordance with the certificates representing the warrants. During the year ended December 31, 2021, the Company sold 269,000 common shares for net proceeds of $48,425 , and a realized gain of $8,075 . As at December 31, 2021, the estimated fair value of the 2,231,000 (2020: 2,500,000 ) shares held by the Company was $245,410 (2020: $375,000 ) determined using the closing price on the TSX Venture Exchange, and the estimated fair value of the 1,250,000 warrants was $4,152 (2020: $51,109 ) determined using the Black-Scholes pricing model with the following assumptions: December 31, 2021 December 31, 2020 Share price $ 0.11 $ 0.15 Exercise price $ 0.50 $ 0.50 Volatility 87 % 104 % Risk free interest rate 0.25 % 0.25 % Expected life 1.02 years 2.0 years Expected dividend yield $ nil $ nil During the year ended December 31, 2021, the Company recognized an unrealized loss on marketable securities of $136,197 (2020: $ 73,891 ). |
EXPLORATION AND EVALUATION ASSE
EXPLORATION AND EVALUATION ASSETS | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
E&E ASSETS | ||
EXPLORATION AND EVALUATION ASSETS | 9. E&E ASSETS The E&E assets of the Company, by property and nature of expenditure, as of December 31, 2022 and 2021 were as follows: Kelly Fourmile Lone Stockade Creek Basin Mountain Miller Mountain Total Balance - December 31, 2020 $ 231,414 $ 346,675 $ 108,648 $ — $ — $ 686,737 E&E expenditures: Acquisition costs 50,000 34,242 30,000 61,702 — 175,944 Consulting 656 21,300 7,236 2,109 — 31,301 Field work — 1,843 — — — 1,843 Finders’ fees — — — 10,000 — 10,000 Geophysics — — — 3,188 — 3,188 Mapping — 277 188 5,919 — 6,384 Mining rights and claim fees 95,958 54,669 80,370 114,919 — 345,916 Technical reports 1,126 6,120 11,285 — — 18,531 Travel — 4,835 — — — 4,835 Total E&E expenditures 147,740 123,286 129,079 197,837 — 597,942 Movement in foreign exchange — 1,477 — — — 1,477 Balance - December 31, 2021 $ 379,154 $ 471,438 $ 237,727 $ 197,837 $ — $ 1,286,156 E&E expenditures: Acquisition costs 50,000 54,433 20,000 25,000 25,000 174,433 Assays 24,554 — — — — 24,554 Consulting 12,693 47,007 7,406 7,956 16,329 91,391 Drilling 327,145 96,993 — — — 424,138 Field supplies 2,121 — — — 2,250 4,371 Field work 1,500 2,332 — — — 3,832 Finders’ fees — — — 10,000 — 10,000 Geophysics 3,000 — — 1,769 — 4,769 Mapping 6,375 — — 5,250 — 11,625 Mining rights and claim fees 96,333 53,095 80,370 49,749 46,666 326,213 Share-based compensation 5,235 5,233 5,235 5,235 5,235 26,173 Travel 6,769 4,144 — 44 566 11,523 Total E&E expenditures 535,725 263,237 113,011 105,003 96,046 1,113,022 Movement in foreign exchange — (30,144) — — — (30,144) Balance - December 31, 2022 $ 914,879 $ 704,531 $ 350,738 $ 302,840 $ 96,046 $ 2,369,034 Acquisition costs include pre-production payments, lease payments and advanced royalty payments in accordance with the terms of the property agreements. 9. E&E ASSETS (Continued) (a) Kelly Creek Project (Nevada, USA) The Company entered into an agreement with Pediment Gold LLC (“Pediment”), a subsidiary of NGE, for an option to earn up to a 70% interest in a joint venture on the Kelly Creek Project. The Company may exercise the option to earn a 51% interest by incurring the following minimum annual E&E expenditures on the project: September 1, 2022 C$ 750,000 (1) Complete June 1, 2023 C$ 1,000,000 In progress June 1, 2024 C$ 1,500,000 In progress June 1, 2025 C$ 1,500,000 In progress (1) $400,000 must be spent on geophysics, geochemistry, drilling or other mutually agreed program. The Company has the option to increase its participating interest by an additional 19 % to a total of 70 % by incurring additional annual E&E expenditures in the amount of C $1,500,000 before each of June 1, 2026, June 1, 2027 and June 1, 2028 and by delivering a pre-feasibility study prior to June 1, 2029. At Pediment’s election, within 120 days of the approval by the joint venture of a feasibility study, the Company will be obligated to provide NGE’s portion of any debt financing or arrange for third party financing of NGE’s portion of any debt financing required to construct a mine on the project in consideration for the transfer by Pediment to the Company an additional 5% interest in the joint venture. There are minimum annual royalty payments required by the Company as part of two underlying agreements within the Kelly Creek Project including: (i) the Genesis agreement and (ii) the Hot Pot agreement. Under the Genesis agreement, the joint venture has the option to purchase 100% of the Genesis claims for $1,500,000 (as adjusted for inflation), subject to a 1.5 % net smelter return royalty and the following advance royalty payments: October 1, 2020 $ 20,000 Paid October 1, 2021 $ 20,000 Paid October 1, 2022 $ 20,000 Paid October 1, 2023 and every year thereafter $ 50,000 (1) (1) In accordance with the terms of the agreement, the amount will be adjusted for inflation. Cumulative advanced royalty payments will be credited against royalty payment obligations and the purchase price. The net smelter return royalty can be reduced by 50% to 0.75% upon payment of $750,000 (as adjusted for inflation). Under the Hot Pot agreement, the Company is subject to the following minimum payments: September 16, 2021 $ 30,000 Paid September 16, 2022 $ 30,000 Paid September 16, 2023 and every year thereafter $ 30,000 9. E&E ASSETS (Continued) Any mineral production on the claims is subject to a 3.0 % net smelter return royalty which can be reduced to 2.0 % upon payment of $2,000,000 . The Hot Pot lease and any additional property within 2.5 miles of the original boundary of the claims is also subject to 1.25 % net smelter return royalty in favour of Battle Mountain Gold Exploration Corporation. (b) Fourmile Basin Property (Nevada, USA) The Company entered into a mineral lease agreement with La Cuesta International, Inc. (“LCI”) on the Fourmile Basin Property. Under the terms of the agreement, the Company is subject to the following pre-production payments: June 18, 2020 $ 25,000 Paid 33,333 common shares Issued December 18, 2020 $ 5,000 Paid June 18, 2021 $ 10,000 Paid December 18, 2021 $ 10,000 Paid June 18, 2022 $ 15,000 Paid December 18, 2022 and every six months thereafter $ 20,000 Paid In addition, the Company is required to incur the following minimum E&E expenditures on the property: Year 1 from date of agreement $ 30,000 Complete Year 2 to Year 3 from date of agreement $ 50,000 Complete The Company is required to pay a production royalty of 2.0% of the net smelter returns for claims 100% owned by LCI and 0.5% of the net smelter returns for third party claims within LCI’s area of influence. Payments to LCI totaling $10,000,000 in any combination of pre-production payments, production or minimum royalties will reduce the production royalties by 50% to 1.0% and 0.25% , respectively. Pre-production payments are deductible against future production royalties. Under the terms of the Fourmile Basin mineral lease agreement, the Company is required to fulfill obligations to NexGen Mining Inc. (“NexGen”) which holds certain properties within the Fourmile Basin lease boundary. Under the agreement, the Company is subject to the following cash advanced royalty payments: October 24, 2020 $ 10,000 Paid October 24, 2021 $ 15,000 Paid October 24, 2022 $ 20,000 Paid October 24, 2023 and every year thereafter $ 25,000 The Company is required to incur the following minimum E&E expenditures on the property: October 24, 2020 $ 5,000 Complete October 24, 2021 $ 10,000 Complete October 24, 2022 $ 15,000 Complete October 24, 2023 $ 20,000 In progress October 24, 2024 and every year thereafter $ 20,000 In progress Any mineral production on the NexGen claims is subject to a 2.0% net smelter return royalty. The net smelter return royalty can be reduced by 1.0% for $250,000 and the remaining 1.0% for $500,000 . 9. E&E ASSETS (Continued) (c) Lone Mountain Property (Nevada, USA) The Company entered into a mineral lease agreement with option to purchase the Lone Mountain Project with NAMMCO. Under the terms of the agreement, the Company is subject to the following pre-production payments: Signing of the lease $ 80,000 Paid November 1, 2021 $ 30,000 Paid November 1, 2022 $ 20,000 Paid November 1, 2023 $ 20,000 November 1, 2024 $ 30,000 November 1, 2025 and every year thereafter (1) $ 30,000 (1) Pre-production payments increase by $10,000 every year after November 1, 2025 to a maximum of $200,000 . The Company is required to incur the following minimum E&E expenditures on the property: September 1, 2024 $ 150,000 In progress September 1, 2025 $ 250,000 In progress September 1, 2026 $ 300,000 In progress September 1, 2027 $ 300,000 In progress September 1, 2028 $ 400,000 In progress September 1, 2029 (1) $ 400,000 In progress (1) The work commitment terminates when $1,800,000 has been spent on the property. Any mineral production on the claims is subject to a 3.0% net smelter return royalty. The net smelter return royalty can be reduced by 0.5% to 2.5% for $2,000,000 . The Company has the option to purchase the entire interest in the project, except for the royalty, once there is a discovery of at least 500,000 ounces of gold (or equivalent in other metals) or a pre-feasibility study has been completed. The Company may exercise this option by payment of $2,000,000 , reduced by the pre-production payments paid to the date of purchase. (d) Miller Project (Nevada, USA) The Company entered into a mineral lease agreement with the option to purchase the Miller Project with Shea Clark Smith and Gregory B. Maynard on February 1, 2021. Under the terms of the agreement, the Company is subject to the following annual lease payments: Signing of the lease $ 50,000 Paid 5,000 common shares Issued February 1, 2022 $ 25,000 Paid February 1, 2023 $ 25,000 Paid (1) February 1, 2024 and every year thereafter $ 30,000 (2) (1) The amount was paid subsequent to December 31, 2022. (2) Lease payments of $30,000 are required every year after February 1, 2024, until a total of $500,000 has been paid. The Company is required to drill 2,000 meters by November 4, 2023 and an additional 3,000 meters by May 4, 2025. The Company has the option to purchase the lease outright at any time for $500,000 less cumulative lease payments to the date of purchase. Any mineral production on the claims is subject to a 2.0% net smelter return royalty and third-party claims acquired within the area of influence are subject to a 0.5% net smelter return royalty. The 2.0% net smelter return royalty can be reduced by 50% to 1.0% for $2,000,000 . 9. E&E ASSETS (Continued) The Miller Project was recommended to the Company by Bull Mountain Resources, LLC (“BMR”). As a result, the Company is required to make finders’ fee payments in accordance with the introductory agent agreement (refer to Note 17). The Miller Project consists of 117 claims in the original lease agreement and an additional 164 claims which were staked in January 2021 for a total of 281 unpatented lode mining claims covering approximately 23.5 km 2 . Although the Company had filed the required documentation with the Bureau of Land Management (“BLM”) and county officials as required, there was a dispute regarding ownership of 134 newly staked claims and 36 original claims. Management has been monitoring the BLM and county registration sites to confirm whether property maintenance fees were paid on the disputed claims by the contending party. The contending party did not pay the property maintenance fees on the disputed claims when they were due on September 1, 2022. The Company believes it is probable that a future economic benefit will flow to the Company from this property. As at December 31, 2022, the carrying value of the Miller Project is $302,840 . (e) Stockade Mountain Property (Oregon, USA) The Company entered into a mineral lease and option agreement with BMR to lease a 100% interest in the Stockade Mountain Property. Under the terms of the agreement, the Company is subject to the following pre-production payments: May 16, 2022 $ 15,000 Paid November 16, 2022 $ 10,000 Paid May 16, 2023 $ 10,000 November 16, 2023 $ 15,000 May 16, 2024 $ 15,000 November 16, 2024 and every six months thereafter $ 25,000 The Company is required to incur the following minimum E&E expenditures on the property: May 16, 2023 $ 30,000 In progress May 16, 2024 2,000 meters of drilling In progress BMR will retain a 2.0% net smelter return royalty on claims owned by BMR and 0.25% net smelter return royalty on third-party claims acquired within the area of influence around the property. Payments to BMR totaling $10,000,000 in any combination of pre-production payments, production or minimum royalties will reduce the production royalties on wholly owned claims by 50% to 1.0% . | 4. EXPLORATION AND EVALUATION ASSETS Kelly Fourmile Lone Miller Creek Basin Mountain Project Total $ $ $ $ $ Expenditures: Acquisition costs* 66,233 67,120 104,240 — 237,593 Consulting 24,870 15,406 4,519 — 44,795 Geology 1,642 — — — 1,642 Geophysics 9,642 651 — — 10,293 Mapping 1,889 — — — 1,889 Mining rights and claim fees 126,732 128,769 — — 255,501 Reports 40,618 — — — 40,618 Share-based compensation 32,567 227,966 32,567 — 293,100 Travel — 1,475 — — 1,475 Total exploration costs 304,193 441,387 141,326 — 886,906 Movement in foreign exchange (9,048) — (2,487) — (11,535) Balance at December 31, 2020 295,145 441,387 138,839 — 875,371 Expenditures: Acquisition costs* 63,000 43,412 37,800 78,300 222,512 Consulting 827 27,004 9,152 2,660 39,643 Field work — 2,337 — — 2,337 Finders fees — — — 12,630 12,630 Geophysics — — — 4,016 4,016 Mapping — 351 230 7,302 7,883 Mining rights and claim fees 120,907 69,309 101,266 145,189 436,671 Technical reports 1,426 7,759 14,287 — 23,472 Travel — 6,130 — — 6,130 Total exploration costs 186,160 156,302 162,735 250,097 755,294 Movement in foreign exchange 32 — 461 885 1,378 Balance at December 31, 2021 481,337 597,689 302,035 250,982 1,632,043 *Acquisition costs includes pre-production payments, lease payments, and advanced royalty payments a. Kelly Creek Project, Nevada, United States On May 29, 2020, the Company entered into a letter of intent, as amended on June 24, 2020 (the “JV LOI”), with Nevada Exploration Inc. (“Nevada Exploration”), which contemplated an option for the Company to earn up to a 70% interest in a joint venture (the “Option to Joint Venture”) with Nevada Exploration in Nevada Exploration’s Kelly Creek project, located in Humboldt County, Nevada (the “Kelly Creek Project”). In accordance with the JV LOI, the Company agreed to purchase, pursuant to a private placement, 2,500,000 units at a price of $0.20 per unit of Nevada Exploration for a total amount of $500,000 (see note 3). On July 7, 2020, pursuant to the JV LOI, the Company entered into a definitive agreement (the “JV Agreement”) through Austin American Corporation (“Austin NV”), a wholly-owned subsidiary of the Company and Pediment Gold LLC (“Pediment”), a subsidiary of Nevada Exploration, whereby Austin NV will be able to exercise the Option to Joint Venture. On March 3, 2021, the Company signed an amendment to the JV Agreement that adjusted the minimum yearly expenditure requirements and extended the other deadlines within the agreement by one year . 4. EXPLORATION AND EVALUATION ASSETS, continued a. Kelly Creek Project, Nevada, United States, continued In accordance with the JV Agreement, as amended, Austin NV may exercise the option to earn a 51% interest in the Kelly Creek Project by incurring the following minimum yearly expenditures toward exploration and development work at the Kelly Creek Project: Original Amended September 1, 2021 $ 1,000,000 $ nil June 1, 2022 $ 1,000,000 $ nil September 1, 2022 $ nil $ 750,000 * June 1, 2023 $ 1,500,000 $ 1,000,000 June 1, 2024 $ 1,500,000 $ 1,500,000 June 1, 2025 $ nil $ 1,500,000 * $400,000 of which must be spent on geophysics, geochemistry, drilling, or other mutually agreed program. During the earn in period, Austin NV will be the operator of the project. Once the Option to Joint Venture has been exercised to earn the 51% interest, the Company and Pediment will enter into a joint venture agreement based on the Rocky Mountain Mineral Law Foundation Exploration, Development and Mining LLC Model Form 5A LLC Operating Agreement. Pursuant to the JV Agreement, as amended, Austin NV shall have the option and right to increase its participating interest in the Kelly Creek Project by an additional 19% to a total of 70% (the “Additional Option”) by incurring additional yearly expenditures in the amount of $1,500,000 before each of June 1, 2026, June 1, 2027 and June 1, 2028 and by delivering a prefeasibility study prior to June 1, 2029. At Pediment’s election, which must be made within 120 days of the approval by the joint venture of a feasibility study, Austin Gold will be obligated to provide Nevada Exploration’s portion of any debt financing or arrange for third party financing of Nevada Exploration’s portion of any debt financing required to construct a mine on the project described in the feasibility study in consideration for the transfer by Pediment to Austin NV of a 5% interest in the Joint Venture. If a party is diluted to a 10% interest in the Joint Venture, its interest will be converted to a 10% net profits interest. There are minimum annual royalty payments in two underlying agreements within the Kelly Creek Project: the Genesis agreement, and the Hot Pot agreement that the Company is also obligated to pay. Under the Genesis agreement, the Joint Venture has the option to purchase 100% of the Genesis claims for USD $1,500,000 (as adjusted for inflation), subject to a 1.5% net smelter return royalty, and the following advance royalty payments: October 1, 2020 US$ 20,000 (paid) October 1, 2021 US$ 20,000 (paid) October 1, 2022 US$ 20,000 October 1, 2023 and annually thereafter US$ 50,000 (as adjusted for inflation) The cumulative advance royalty payments shall be credited against royalty payment obligations and against the purchase price. Half of the net smelter return royalty can be bought for US $750,000 (as adjusted for inflation) and the royalty would then be 0.75% . The Hot Pot lease is subject to the annual payment of US $30,000 due on September 16 th each year (2020 and 2021 – paid). Under the Hot Pot agreement, any mineral production on the project is subject to a 3% net smelter return royalty to the property owner, subject to the Joint Venture’s right to reduce the royalty from 3% to 2% for US $2,000,000 . 4. EXPLORATION AND EVALUATION ASSETS, continued a. Kelly Creek Project, Nevada, United States, continued The Hot Pot lease and any additional property, if all or any part of such property lies within 2.5 miles of the original boundary of the Hot Pot property, is also subject to a 1.25% net smelter returns royalty in favour of Battle Mountain Gold Exploration Corporation. b. Fourmile Basin Property, Nevada, United States On June 18, 2020 (the “Effective Date”), the Company entered into a mineral lease agreement (“Fourmile Mineral Lease”) with La Cuesta International, Inc. (“LCI”) for exploration and mining rights and access to certain mineral claims on the Fourmile Basin Property situated in Nye County, Nevada. The primary term of the Fourmile Mineral Lease is for a period of 35 years from the Effective Date. The lease may be extended up to 50 years so long as the Company meets the required payments to LCI as outlined below. The agreement may extend past 50 years so long as active mining operations are then continuing on the premises, in which case the Fourmile Mineral Lease shall continue so long as such operations are being conducted. Pursuant to the Fourmile Mineral Lease, the Company must make the following pre-production payments: Effective Date US$ 25,000 cash (paid) 33,333 Company shares (issued) 6 months after Effective Date (December 18, 2020) US$ 5,000 cash (paid) 12 months after Effective Date (June 18, 2021) US$ 10,000 cash (paid) 18 months after Effective Date (December 18, 2021) US$ 10,000 cash (paid) 24 months after Effective Date (June 18, 2022) US$ 15,000 cash 30 months after Effective Date and every 6 months thereafter US$ 20,000 cash Pre-production payments paid to LCI will apply to the entire premises and are deductible against future production royalties to be paid to LCI regardless of the year in which advance royalty payments are made. In addition to pre-production payments, the Company must pay the annual claim fees and landholdings costs, as well as incur the following minimum exploration costs on the premises (or pay to LCI the equal amount in cash at the end of the relevant time period): Year 1 from Effective Date US$ 30,000 (fulfilled) Year 2 to Year 3 from Effective Date US$ 50,000 ( $34,000 fulfilled as at December 31, 2021) Work completed that exceeds the minimum requirement for a given year may be applied to requirements stipulated for subsequent years. Work commitments shall not be deducted against the production royalty. Under the terms of the agreement, the Company must pay a production royalty of 2% of the net smelter returns for claims owned 100% by LCI, and 0.5% of the net smelter returns for third-pay claims and/or fee lands acquired within LCI’s area of influence. Payments to LCI totalling US $10,000,000 in any combination of pre-production payments, production and minimum royalties shall reduce LCI’s royalties by 50% to 1% and 0.25% respectively. Production royalties shall be paid quarterly and will be the greater of a) US $25,000 per quarter or b) the production royalty payable in accordance with the NSR Royalty. Any positive difference in the quarterly payment between a) minus b) payable for that quarter shall be credited against the production royalty. 4. EXPLORATION AND EVALUATION ASSETS, continued b. Fourmile Basin Property, Nevada, United States, continued Mining Lease with NexGen Mining Incorporated Under the terms of the Fourmile Mineral Lease, the Company must also fulfill certain obligations to NexGen Mining Incorporated (“NexGen”) who holds certain properties within the Fourmile Mineral Lease. Pursuant to this contingent lease agreement (the “NexGen Lease”), the Company must incur the following expenditures: October 24, 2020 US$ 5,000 (fulfilled) October 24, 2021 US$ 10,000 (fulfilled) October 24, 2022 US$ 15,000 (fulfilled) October 24, 2023 US$ 20,000 (US $10,000 fulfilled) October 24, 2024 and every year thereafter US$ 20,000 In the event any single year’s work requirement is not completed, the balance of the work commitment may be paid in cash to NexGen, and excess expenditures may be applied to subsequent year(s) expenditure commitment. Once the property is in production at a minimum sustained rate of 100 tons per day the work requirement shall be suspended for so long as the property remains in production at that rate. Advanced royalty payments, claim maintenance fees, and new claim staking and filing fees are not considered work commitment expenses. On November 7, 2020, NexGen agreed to apply US $40,000 of work expenditures incurred by a prior lessee against the Company’s expenditure requirements. This agreement satisfied the Company’s work requirements for 2020, 2021, 2022, and US $10,000 of the October 2023 expenditures. In addition to the work commitment expenses, the Company must make the following cash advanced royalty payments to NexGen: October 24, 2020 US$ 10,000 (paid) October 24, 2021 US$ 15,000 (paid) October 24, 2022 US$ 20,000 October 24, 2023 and every year thereafter US$ 25,000 The Company must also pay NexGen a 2.0% net smelter royalty and the Company has a royalty buy down under which the Company may purchase NexGen’s 2.0% net smelter royalty. The purchase price is US $250,000 for the first 1%, and US $500,000 for the remaining 1% of the total net smelter return reserved to NexGen. c. Lone Mountain Project, Nevada, United States On September 15, 2020, the Company signed a Letter of Intent with NAMMCO (the “LOI”). The LOI contemplated that the agreement will be a lease with option to purchase mining claims located in Elko County, Nevada (the “Lone Mountain project”). On November 1, 2020, pursuant to the LOI, the Company entered into a definitive agreement with NAMMCO through Austin NV. The agreement has a term of 10 years plus 10 - year extensions so long as the minimum payments are paid. The owner will retain a 3% net smelter return royalty on the Lone Mountain project. At any time, the Company can buy one -half percentage point of the royalty for US $2,000,000 , reducing the royalty from 3% to 2.5% . 4. EXPLORATION AND EVALUATION ASSETS, continued c. Lone Mountain Project, Nevada, United States, continued The Company will have the option to purchase the entire interest in the Lone Mountain project, except for the royalty, at any time during the lease or the lease extension once the Company has made a discovery of equal to or greater than 0.5 million ounces of gold (or equivalent in other metals) or completed a pre-feasibility study. If the Company elects to exercise the option to purchase, the Company must pay the owner US $2,000,000 . The purchase price shall be reduced by the pre-production payments paid to the date of purchase. Pursuant to the agreement, the Company must make the following pre-production payments to NAMMCO: Within 5 days of signing the lease US$ 80,000 (paid) November 1, 2021 US$ 30,000 (paid) November 1, 2022 US$ 30,000 November 1, 2023 US$ 30,000 November 1, 2024 US$ 40,000 November 1, 2025 and each year thereafter Increasing by US $10,000 /year thereafter to a maximum of US $200,000 Each cash pre-production payment shall be credited against the purchase price until the purchase price is paid in full, then the pre-production payments will be credited against the future production royalties as an advance royalty. Effective April 29, 2021, the Company signed an amendment to the Lone Mountain definitive agreement. Pursuant to the amended agreement, the Company will be required to pay the annual claim maintenance fees, and fulfill the following annual work commitments on the Lone Mountain project: Original Amended September 1, 2021 US$ 150,000 US$ nil September 1, 2022 US$ 250,000 US$ 400,000 September 1, 2023 US$ 300,000 US$ 300,000 September 1, 2024 US$ 300,000 US$ 300,000 September 1, 2025 US$ 400,000 US$ 400,000 September 1, 2026 US$ 400,000 US$ 400,000 The work commitment for September 2022 is a firm commitment. Work completed that exceeds the minimum requirement for a given year will be credited to the Company’s favour and credited to subsequent years. The work commitment terminates when US $1,800,000 has been expended on the property. d. Miller Project, Nevada, United States On December 17, 2020, the Company signed a Letter of Intent (the “Miller LOI”) with Shea Clark Smith and Gregory B. Maynard (“Smith and Maynard”). The Miller LOI contemplates that the agreement will be a lease with option to purchase mining claims (the “Miller Lease”) located on the Carlin Trend in Elko County, Nevada (the “Miller Project”). On February 1, 2021 pursuant to the Miller LOI, the Company entered into a definitive agreement with Smith and Maynard through Austin NV. The Miller Project was recommended to the Company by Bull Mountain Resources, LLC (“BMR”), and the Company will be required to make agent payments per the BMR Agreement outlined in Note 7. 4. EXPLORATION AND EVALUATION ASSETS, continued d. Miller Project, Nevada, United States, continued Under the terms of the agreement, the Miller Lease is for a term of 35 years , with the following work commitments: - a firm commitment to drill 2,000 metres on the Miller Project within 18 months of the date the Company’s shares are listed on a stock exchange in either Canada or the United States (the “Listing Date”); and - a requirement to drill an additional 3,000 metres to be drilled within 36 months after the Listing Date to maintain the Miller Lease at the Company’s discretion. Smith and Maynard will retain a 2% Net Smelter Return (“NSR”) royalty on production from within an area of influence around the Miller Project. 1% of the NSR can be purchased by the Company for US $2,000,000 , reducing the royalty to 1% . If the Company options or purchases claims within the area of influence from third parties, the royalty payable to Smith and Maynard on those optioned or purchased claims will be reduced to 0.5% NSR. The Company is also required to make the following annual lease payments: Within 5 days of signing the lease US$ 50,000 (paid) 5,000 Company shares (issued) February 1, 2022 US$ 25,000 (subsequently paid) February 1, 2023 US$ 25,000 February 1, 2024 and each year thereafter US $30,000 until a total of US $500,000 has been paid Pursuant to the agreement, the Company will also be responsible for paying the annual claim maintenance fees and has staked additional claims to close gaps among the existing claim groups. Austin NV has the option to purchase the Miller lease outright at any time for US $500,000 , which amount shall be reduced by the cumulative total of the lease payments previously paid. The Miller Project consists of 117 claims in the original lease agreement, and an additional 164 claims which were staked in January of 2021 for a total of 281 unpatented lode mining claims covering approximately 23.5 km 2 . Although the Company has filed the required documentation with the BLM and county as required, there is currently a dispute on the ownership of 134 of the newly staked claims and on 36 of the original claims. The Company believes it is probable that a future benefit will flow to the Company, and as at December 31, 2021, the Company has capitalized US $88,888 of expenditures relating to their acquisition. |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT | ||
E&E ASSETS | 10. PROPERTY AND EQUIPMENT Computer equipment Net book value - December 31, 2020 $ 2,564 Depreciation (780) Movement in foreign exchange 19 Net book value - December 31, 2021 1,803 Depreciation (527) Movement in foreign exchange (95) Net book value - December 31, 2022 1,181 | 5. FIXED ASSETS Computer Equipment $ Balance April 21, 2020 — Additions 3,841 Depreciation (576) Balance December 31, 2020 3,265 Depreciation (980) Balance December 31, 2021 2,285 |
SHARE CAPITAL AND OPTION RESERV
SHARE CAPITAL AND OPTION RESERVES | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE CAPITAL AND OTHER RESERVES | ||
SHARE CAPITAL AND OPTION RESERVES | 12. SHARE CAPITAL AND OTHER RESERVES (a) Share capital At December 31, 2022, the authorized share capital of the Company consisted of an unlimited number of common shares without par value and an unlimited number of preferred shares without par value. On May 6, 2022, the Company issued 3,754,750 shares at $4.00 pursuant to the closing of the Company’s IPO for gross proceeds of $15,019,000 . Total share issuance costs were $1,165,580 . The Company also issued 262,833 underwriter warrants relating to the IPO (refer to Note 12d). On February 2, 2021, the Company issued 5,000 common shares with a fair value in the amount of $11,702 related to obligations under a mineral lease agreement. (b) Other reserves The Company’s other reserves consisted of the following: December 31, December 31, 2022 2021 Other reserve - Share options $ 1,781,096 $ 1,624,053 Other reserve - Warrants 263,596 — $ 2,044,692 $ 1,624,053 (c) Share options The Company has adopted an incentive share option plan which provides that the Board of Directors of the Company may from time to time, in their discretion, grant to its directors, officers, employees and consultants of the Company, non-transferable options to purchase common shares, provided that the number of common shares reserved for issue does not exceed 10% of the number of then outstanding common shares. The term of each share option is set by the Board of Directors at the time of grant but cannot exceed a maximum term of ten years from the date of grant. The exercise price of each share option is set by the Board of Directors at the time of grant but cannot be less than the then market price of common shares. The following table summarizes the changes in share options for the year ended December 31: 2022 2021 Weighted Weighted Number of average Number of average share options exercise price share options exercise price Outstanding, January 1, 716,663 $ 2.37 716,663 $ 2.36 Granted 460,003 0.92 — — Expired (83,333) 2.36 — — Outstanding, December 31, 1,093,333 $ 1.67 716,663 $ 2.37 The following table summarizes information about share options outstanding and exercisable at December 31, 2022: Share options outstanding Share options exercisable Number of Weighted Number of Weighted share options average years share options average Exercise prices outstanding to expiry exercisable exercise price $0.50 - $1.00 460,003 4.82 114,994 0.92 $2.01 - $2.50 633,330 7.20 633,330 $ 2.22 1,093,333 6.20 748,324 $ 2.02 The total share-based compensation expense for the year ended December 31, 2022 was $ 157,043 (2021 – nil ) of which $ 130,870 has been expensed in the statement of loss and comprehensive loss and $26,173 has been capitalized to E&E assets. 12. SHARE CAPITAL AND OTHER RESERVES (Continued) The following are the weighted average assumptions used to estimate the fair value of share options granted for the years ended December 31, 2022 and 2021 using the Black-Scholes pricing model: For the year ended December 31, December 31, 2022 2021 Expected life 5.00 years N/A Expected volatility 143.18 % N/A Risk-free interest rate 4.09 % N/A Expected dividend yield — N/A Forfeiture rate — N/A Option pricing models require the input of subjective assumptions including the expected price volatility and expected share option life. Changes in these assumptions would have a significant impact on the fair value calculation. (d) Warrants The following table summarizes the changes in warrants for the year ended December 31: 2022 2021 Number of Warrant Number of Warrant warrants reserve warrants reserve Outstanding, January 1, — $ — — $ — Transactions during the year: Warrants issued - IPO 262,833 238,217 — — Warrants issued - consultants 100,000 25,379 — — Outstanding, December 31, 362,833 $ 263,596 — $ — On May 6, 2022, the Company issued 262,833 warrants to the underwriters in connection with the IPO. The warrants are exercisable at a price of $4.40 or on a cashless basis for shares at the option of the holder. The underwriter warrants expire on November 6, 2023. At issuance, the underwriter warrants were valued at $238,217 using the Black-Scholes pricing model and were recorded as a share issuance cost. On November 1, 2022, the Company issued 100,000 warrants to an investor relations consultant. The warrants vest over tranches at an exercise price of $0.81 . The warrants expire on November 1, 2025. The total share-based compensation expense for the year ended December 31, 2022 was $26,480 which was expensed in the statement of loss and comprehensive loss. The following are the weighted average assumptions used to estimate the fair value of warrants issued for the years ended December 31, 2022 and 2021 using the Black-Scholes pricing model: For the year ended December 31, December 31, 2022 2021 Expected life 1.91 years N/A Expected volatility 109.94 % N/A Risk-free interest rate 1.42 % N/A Expected dividend yield — N/A Forfeiture rate — N/A Warrant pricing models require the input of subjective assumptions including the expected price volatility and expected share option life. Changes in these assumptions would have a significant impact on the fair value calculation. | 6. SHARE CAPITAL AND OPTION RESERVES On October 25, 2021, the Company conducted a three to one stock consolidation. All share capital figures disclosed reflect the post-consolidated amounts. a. Authorized and issued share capital At December 31, 2021, the Company’s authorized share capital consisted of an unlimited number of common shares without par value and an unlimited number of preferred shares without par value. During the year ended December 31, 2021, the Company issued the following shares: - On February 2, 2021, the Company issued 5,000 common shares pursuant to a mineral lease agreement. See note 4d. During the period ended December 31, 2020, the Company issued the following shares: - In April 2020, the Company issued 6,666,668 common shares at a price of US $0.015 per common share for gross proceeds of US $100,000 . - In June 2020, the Company completed non-brokered private placements consisting of 1,083,333 common shares at a price of US $0.30 per common share for gross proceeds of US $325,000 , 861,999 common shares at a price of US $0.75 for gross proceeds of US $646,500 , and 133,333 common shares at a price of $1.05 for gross proceeds of $140,000 . - On June 19, 2020, the Company issued 33,333 common shares pursuant to a mineral lease agreement. See note 4b. - In July 2020, the Company completed non-brokered private placements consisting of 66,667 common shares at a price of US $0.75 per common share for gross proceeds of US $50,000 , and 666,667 common shares at a price of $3.00 per common share for gross proceeds of $2,000,000 . b. Stock options The Company has adopted a stock option plan (the “Plan”) for its employees, directors, officers and consultants. The plan provides for the issuance of options to acquire up to a total of 10% of the issued and outstanding common shares of the Company. The exercise price of each option shall not be less than the minimum prescribed amount allowed under the TSX Venture Exchange. The options can be granted for a maximum term of 10 years with vesting provisions determined by the Company. For the period ended December 31, 2021, the Company granted nil (2020: 716,663 ) stock options at an exercise price of $nil (2020: $3.00 ) to employees, directors, and consultants for a term of 10 years and vesting at the date of grant. For the period ended December 31, 2021, the share-based compensation of $nil (2020: $1,807,450 ) was recognized in comprehensive loss. In addition, share-based compensation of $nil (2020: $293,100 ) was capitalized to mineral interests. Number of share Weighted average options exercise price $ Balance April 21, 2020 — — Granted 716,663 3.00 Outstanding as at December 31, 2020 716,663 3.00 Outstanding as at December 31, 2021 716,663 3.00 The weighted average fair value of stock options granted in 2020 was to be estimated based on the Black-Scholes option pricing model using a share price of $3.00 , volatility of 141.595% , risk-free interest rate of 1.74% , expected life of 10 years and expected dividend yield of $nil . 6. SHARE CAPITAL AND OPTION RESERVES, continued b. Stock options, continued At December 31, 2021, the following share options were outstanding and exercisable: Number of share Exercise price per options share Expiry Date $ $ 716,663 3.00 December 2, 2030 Number of share options December 31, 2021 Weighted average exercise price for exercisable options $ 3.00 Weighted average share price for options exercised — Weighted average years to expiry for exercisable options 8.93 years |
COMMITMENTS_2
COMMITMENTS | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
COMMITMENTS. | ||
COMMITMENTS | 17. COMMITMENTS The Company executed an introductory agent agreement with BMR (the “BMR Agreement”). Under the BMR Agreement, should a mineral property recommended by BMR be acquired by the Company, the Company shall pay an introductory agent fee. The BMR Agreement is currently in effect for the Miller Project, as of February 1, 2021, with the introductory agent fee commitment as follows: Within 15 days of acquisition $ 5,000 Paid 6 months after acquisition $ 5,000 Paid 12 months after acquisition $ 5,000 Paid 18 months after acquisition $ 5,000 Paid 24 months after acquisition $ 7,500 Paid (1) 30 months after acquisition $ 7,500 36 months after acquisition $ 10,000 42 months after acquisition $ 10,000 48 months after acquisition and every six months thereafter $ 15,000 (1) The amount was paid subsequent to December 31, 2022. If commercial production is achieved on a property recommended by BMR, the Company shall pay a 0.5% net smelter return royalty on all mineral interests acquired within the area of influence of the mineral property. Introductory agent fees and net smelter return royalty payments totaling $1,000,000 paid by the Company will reduce the net smelter return royalty by 50% to 0.25% . | 7. COMMITMENTS Introductory Agent Agreement The Company has signed an introductory agent agreement (the “BMR Agreement”) with Bull Mountain Resources, LLC (“BMR”). Under the BMR Agreement, should a mineral property recommended by BMR be acquired by the Company, then the Company shall pay an introductory agent fee as follows: Within 15 days of acquisition US$ 5,000 6 months after acquisition US$ 5,000 12 months after acquisition US$ 5,000 18 months after acquisition US$ 5,000 24 months after acquisition US$ 7,500 30 months after acquisition US$ 7,500 36 months after acquisition US$ 10,000 42 months after acquisition US$ 10,000 48 months after acquisition US$ 15,000 Every 6 months thereafter US$ 15,000 If commercial production is achieved on one or more mineral properties recommended by BMR and acquired or partially acquired by the Company, then the Company shall pay BMR a 0.5% net smelter returns royalty on all mineral interests acquired within the area of influence of the mineral property. For each recommended mineral property acquired by the Company under the terms of the BMR Agreement, introductory agent fees and net smelter return royalty payments totaling US$ 1,000,000 paid by the Company to BMR shall reduce the net smelter return royalty by 50% to a 0.25% net smelter return royalty. Other Commitments The Company also has payment obligations relating to the Kelly Creek, Fourmile Basin, Lone Mountain and Miller projects. See notes 4a, 4b, 4c and 4d. |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
RELATED PARTY TRANSACTIONS AND BALANCES | 13. RELATED PARTY TRANSACTIONS AND BALANCES Key management includes the Company’s directors and officers including its President, Corporate Secretary and Chief Financial Officer (“CFO”). Directors and key management compensation: For the year ended December 31, December 31, 2022 2021 Management and consulting fees $ 559,591 $ 12,206 Share-based compensation 136,148 — Directors’ fees 44,380 — $ 740,119 $ 12,206 For the year ended December 31, 2022, the Company’s officers incurred $50,359 (2021 – $11,266 ) of administration expenses in the normal course of business on behalf of the Company. For the year ended December 31, 2022, the Company incurred $21,149 (2021 – nil ) with P2 Gold Inc., a related party of the Company, under a CFO shared-services agreement. These expenditures were expensed under management and consulting fees in the statement of loss and comprehensive loss. As at December 31, 2022, accounts payable and accrued liabilities include $7,568 (2021 – nil ) owed to related parties of the Company for transactions incurred in the normal course of business. The Company entered into a joint venture agreement with Pediment, a subsidiary of NGE, for the Kelly Creek Project (refer to Note 9) and owns 2,231,000 common shares of NGE (refer to Note 8). The President of the Company served as the non-executive chairman and director of NGE until October 1, 2022. As of December 31, 2022, the Corporate Secretary and a director of the Company were directors of NGE. | 8. RELATED PARTY TRANSACTIONS AND BALANCES The Company’s related parties include key management personnel and directors. Key management personnel include those persons having authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. The Company has determined that key management personnel consists of members of the Board and corporate officers. Compensation 2021 2020 $ $ Management fees (i) 6,000 2,000 Accounting fees (ii) 9,300 — Share-based payments (iii) — 1,807,450 15,300 1,809,450 (i) Management fees are compensation paid to an officer of the Company. (ii) Accounting fees are fees paid to the CFO for preparation of the financial statements. (iii) Share-based payment is the fair value of options granted and vested. During the year ending December 31, 2021, the President of the Company incurred $8,652 (2020: $8,909 ) for administration expenses on behalf of the Company. As at December 31, 2021, $nil (2020: $4,929 ) was payable to the President. The amount due is non-interest bearing, unsecured and due on demand. During the year ending December 31, 2021, the Corporate Secretary of the Company incurred $5,470 (2020: $1,519 ) for administration expenses on behalf of the Company. As at December 31, 2021, $nil (2020: $nil ) was payable to the Corporate Secretary. During the period ending December 31, 2020, the Company entered into a private placement and letter of intent with Nevada Exploration Inc., a company of which the President of the Company also serves as a director and non-executive chairman. The Company also entered into an Option to Joint Venture on a project owned by a subsidiary of Nevada Exploration Inc. See notes 3 and 4a. These transactions occurred in the normal course of operations and are measured at their exchange amounts, being the amounts agreed upon by the related parties. |
FINANCIAL INSTRUMENT RISK
FINANCIAL INSTRUMENT RISK | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
FINANCIAL RISK MANAGEMENT | ||
FINANCIAL INSTRUMENT RISK | 15. FINANCIAL RISK MANAGEMENT The Company has exposure to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk from its use of financial instruments. This note presents information about the Company’s exposure to each of these risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. Risk management is the responsibility of management and is carried out under the oversight of and policies approved by the Board of Directors. Material risks are monitored and are regularly discussed with the Audit Committee and the Board of Directors. (a) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s cash flows or value of its financial instruments. 15. FINANCIAL RISK MANAGEMENT (Continued) (i) Currency risk The Company is subject to currency risk on financial instruments that are denominated in currencies that are not the same as the functional currency of the entity that holds them. Exchange gains and losses would impact the statement of loss and comprehensive loss. The Company does not use any hedging instruments to reduce exposure to fluctuations in foreign currency rates. The Company is exposed to currency risk through cash and cash equivalents, receivables and other, marketable securities and accounts payable and accrued liabilities held in the parent entity which are denominated in CAD. The following table shows the impact on pre-tax loss of a 10% change in the USD:CAD exchange rate on financial assets and liabilities denominated in CAD, as of December 31, 2022, with all other variables held constant: Impact of currency rate change on pre-tax loss 10% increase 10% decrease Cash and cash equivalents $ 11,629 $ (11,629) Receivables and other 16,098 (16,098) Marketable securities 1,647 (1,647) Accounts payable and accrued liabilities (5,234) 5,234 (ii) Interest rate risk The Company is subject to interest rate risk with respect to its investments in cash and cash equivalents and short-term investments. The Company’s current policy is to invest cash at variable and fixed rates of interest with cash reserves to be maintained in cash and cash equivalents in order to maintain liquidity. Fluctuations in interest rates when cash and cash equivalents and short-term investments mature impact interest and finance income earned. The impact on pre-tax loss of a 1% change in variable interest rates on financial assets and liabilities as of December 31, 2022, with all other variables held constant, would be nominal. (b) Credit risk Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its financial assets including cash and cash equivalents and short-term investments. The carrying amount of financial assets represents the maximum credit exposure: December 31, December 31, 2022 2021 Cash and cash equivalents $ 630,623 $ 1,094,550 Short-term investments 11,649,079 — $ 12,279,702 $ 1,094,550 The Company mitigates its exposure to credit risk on financial assets through investing its cash and cash equivalents and short-term investments with high-credit quality financial institutions. Management believes there is a nominal expected credit loss associated with its financial assets. (c) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. 15. FINANCIAL RISK MANAGEMENT (Continued) The Company has issued surety bonds to support future decommissioning and restoration provisions. Contractual undiscounted cash flow requirements for contractual obligations as at December 31, 2022 are as follows: Carrying Contractual Due within Due within Due within amount cash flows 1 year 2 years 3 years Accounts payable and accrued liabilities $ 97,825 $ 97,825 $ 97,825 $ — $ — $ 97,825 $ 97,825 $ 97,825 $ — $ — (d) Capital management The Company’s objectives in managing capital are to safeguard the ability to continue as a going concern and provide financial capacity to meet its strategic objectives. Management monitors the amount of cash and cash equivalents and equity in the capital structure and adjusts the capital structure, as necessary, to continue as a going concern and to support the acquisition, exploration and development of its mineral projects. The capital structure of the Company consists of equity attributable to common shareholders, comprising of issued share capital, other reserves, AOCI and deficit. To maintain or adjust the capital structure, the Company may issue new shares, issue new debt, acquire or dispose of mineral projects to facilitate the management of its capital requirements. The Company prepares annual expenditure budgets that are reviewed by the Board of Directors. Forecasts are regularly reviewed and updated for changes in circumstances so that appropriate capital allocation, investment and financing decisions are made for the Company. (e) Fair value estimation The Company’s financial assets and liabilities are initially measured and recognized according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy are as follows: Level 1: Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data. The Company’s financial instruments consisting of cash and cash equivalents, short-term investments and accounts payable and accrued liabilities approximate their fair value due to the short-term maturity of these financial instruments. Marketable securities are fair valued at each reporting period using NGE’s share price on the TSX Venture Exchange and assumptions used in the Black-Scholes pricing model. 15. FINANCIAL RISK MANAGEMENT (Continued) The following tables present the Company’s financial assets and liabilities by level within the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. As at December 31, 2022 Carrying value Fair value FVTPL Amortized cost Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ — $ 630,623 $ — $ — $ — Short-term investments — 11,649,079 — — — Marketable securities 16,473 — 16,472 — 1 $ 16,473 $ 12,279,702 $ 16,472 $ — $ 1 As at December 31, 2021 Carrying value Fair value FVTPL Amortized Level 1 Level 2 Level 3 cost Financial assets Cash and cash equivalents $ — $ 1,094,550 $ — $ — $ — Marketable securities 196,847 — 193,572 — 3,275 $ 196,847 $ 1,094,550 $ 193,572 $ — $ 3,275 | 9. FINANCIAL INSTRUMENT RISK The Company’s financial instruments consist of cash, marketable securities, accounts payable and accrued liabilities. The fair values of these financial instruments approximate their carrying values, other than cash and marketable securities which are carried at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following summarizes fair value hierarchy under which the Company’s financial instruments are valued: - Level 1 – fair values based on unadjusted quoted prices in active markets for identical assets or liabilities; - Level 2 – fair values based on inputs that are observable for the asset or liability, either directly or indirectly; and - Level 3 – fair values based on inputs for the asset or liability that are not based on observable market data. The following table sets forth the Company’s financial assets measured at fair value on a recurring basis: Fair Value Measurements Using Balance as at Level 1 Level 2 Level 3 December 31, 2021 $ $ $ $ Assets Cash 1,387,670 — — 1,387,670 Marketable securities 245,410 — 4,152 249,562 Total assets measured at fair value 1,633,880 — 4,152 1,637,232 Fair Value Measurements Using Balance as at Level 1 Level 2 Level 3 December 31, 2020 $ $ $ $ Assets Cash 2,421,796 — — 2,421,796 Marketable securities 375,000 — 51,109 426,109 Total assets measured at fair value 2,796,796 — 51,109 2,847,905 The Company examines the various financial instrument risks to which it is exposed and assesses any impact and likelihood of those risks. The Company’s risk exposures and their corresponding impact on the Company’s consolidated financial instruments as at December 31, 2021 and December 31, 2020 are summarized below. Credit Risk The Company’s primary exposure to credit risk is the risk of cash, amounting to $1,387,670 at December 31, 2021 (2020: $2,421,796 ). As the Company’s policy is to limit cash holdings to instruments issued by major Canadian banks, the credit risk is considered by management to be negligible. As at December 31, 2021, the Company had a receivable balance of $11,430 (2020: $3,133 ), which primarily relates to GST receivable from the Federal Government of Canada. Liquidity Risk Liquidity risk is the risk that the Company will not be able to pay financial instrument liabilities as they come due. The Company’s only liquidity risk from financial instruments is its need to meet operating accounts payable requirements. The Company has maintained sufficient current asset balances to meet these needs at December 31, 2021. Carrying Contractual Within Within Within Amount Cash Flows 1 year 2 years 3 years $ $ $ $ $ Accounts payable and accrued liabilities 77,048 77,048 77,048 — — Total as at December 31, 2021 77,408 77,048 77,048 — — Foreign Exchange Risk Foreign exchange risk is the risk arising from changes in foreign currency fluctuations. The Company does not use any derivative instruments to reduce its exposure to fluctuations in foreign currency rates. The Company operates projects in the United States. As a result, a portion of the Company’s cash is denominated in US dollars and is therefore subject to fluctuation in exchange rates. As at December 31, 2021, a 10% change in the exchange rate between the Canadian and US dollar would increase (decrease) loss and comprehensive loss by $2,535 (2020: $66,935 ). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SEGMENT INFORMATION | ||
SEGMENT INFORMATION | 18. SEGMENTED INFORMATION Exploration and development of mineral projects is considered the Company’s single business segment. All of the Company’s E&E assets are located in the USA. | 10. SEGMENT INFORMATION The Company operates in one business segment being the exploration of mineral properties. The Company’s mineral property assets are all located in the United States. |
INCOME TAXES
INCOME TAXES | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
TAXATION | ||
INCOME TAXES | 16. TAXATION (a) Deferred income taxes The tax effects of temporary differences between the amounts recorded in the Company’s accounts and the corresponding amounts as computed for income tax purposes give rise to deferred income taxes as follows: For the year ended December 31, December 31, 2022 2021 Tax loss carry forwards $ 332,184 $ 99,672 Share issuance costs 288,230 — Marketable securities and other 74,568 41,908 Deferred income taxes not recognized (694,982) (141,580) $ — $ — The Company has tax losses in Canada of approximately $1,191,205 (2021 – $375,315 ) expiring in various amounts from 2040 to 2042. The other temporary differences do not expire under current legislation. A deferred tax asset has not been recognized in respect of the temporary differences, as it is not probable that sufficient future taxable earnings will be available in the periods when deductions from such potential assets will be realized. (b) Income tax expense (recovery) The provision for income taxes differs from the amount calculated using the Canadian federal and provincial statutory income tax rates of 27.0% (2021 – 27.0% ) as follows: For the year ended December 31, December 31, 2022 2021 Expected income tax recovery $ (288,466) $ (108,298) Share issuance costs (298,176) — Impact of difference in tax rates and other (10,670) 21,425 Share-based compensation 43,910 — Deferred income taxes not recognized 553,402 86,873 $ — $ — For the Company’s subsidiary, the USA statutory income tax rate is 21.0% (2021 – 21.0% ) and the Nevada state statutory income tax rate is nil (2021 – nil ). | 11. INCOME TAXES The Company accounts for income taxes using the taxes payable method. As a result, the Company’s income tax expense varies from the amount that would otherwise result from the application of the statutory income tax rates as set out below: December 31, December 31, 2021 2020 $ $ Net income (loss) before income taxes (502,779) (2,070,249) Income tax recovery based on effective rate of 27% (2020 – 27% ) (135,750) (551,850) Permanent differences and others 26,856 479,127 Change in deferred tax assets not recognized 108,894 72,723 Net deferred tax (recovery) — — Deferred income tax Deferred income tax assets have not been recognized in respect of the following deductible temporary differences: December 31, December 31, 2021 2020 $ $ Non-capital loss carry-forwards 128,486 53,142 Marketable securities and others 53,131 19,581 Deferred tax assets not recognized (181,617) (72,723) — — Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Company can use the benefits. The Company has non-capital tax losses totaling $475,875 , which commenced expiring in 2041. The other temporary differences do not expire under current legislation. |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of presentation | 2. BASIS OF PREPARATION Statement of compliance and basis of presentation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements have been prepared on a historical cost basis except for financial instruments classified as fair value through profit or loss (“FVTPL”), which are stated at their fair value. These consolidated financial statements were authorized for issue by the Board of Directors on March 15, 2023. | a. Basis of presentation Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Board of Directors of the Company approved these consolidated financial statements and authorized them for issue on March 15, 2022. Basis of Measurement These consolidated financial statements of the Company have been prepared on an accrual basis, and are based on historical costs, except for financial instruments measured at fair value. Functional and Presentation Currency These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. The subsidiary’s functional currency is United States dollars. All financial information is expressed in Canadian dollars unless otherwise stated and has been rounded to the nearest dollar. |
Basis of consolidation | (a) Basis of consolidation These consolidated financial statements include the financial statements of the Company and the entity controlled by the Company, its subsidiary, listed in the following table: Place of Proportion of Name of subsidiary incorporation ownership interest Principal activity Austin American Corporation (“Austin NV”) Nevada, USA 100 % Holds interests in exploration projects 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give the Company the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50 % of the voting rights or currently exercisable potential voting rights of a subsidiary’s share capital. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Intercompany balances and transactions, including any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. | b. Basis of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Austin American Corporation (“Austin NV”), from the Company’s incorporation on April 21, 2020. All significant intercompany accounts and transactions between the Company and its subsidiary have been eliminated upon consolidation. Proportion of Place of Ownership Name of Subsidiary Incorporation Interest Principal Activity Austin American Corporation Nevada, United States 100 % Exploration company |
Critical accounting estimates and judgments | c. Use of estimates and judgements The preparation of these consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from management’s best estimates as additional information becomes available. Significant areas requiring the use of management estimates and judgments include: i) The determination of the fair value of the shares of the Company for the calculation of the share-based compensation. ii) The determination of the fair values of warrants held as marketable securities by the Company. iii) The assessment of the Company’s ability to continue as a going concern involves judgment regarding future funding available to identify new business opportunities and working capital requirements, the outcome of which is uncertain. iv) The determination that exploration, evaluation, and related costs incurred which were capitalized may have future economic benefits and may be economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including: geologic and other technical information, a history of conversion of mineral deposits with similar characteristics to its own properties to proven and probable mineral reserves, the quality and capacity of existing infrastructure facilities, evaluation of permitting and environmental issues and local support for the project. v) The measurement of deferred income tax assets and liabilities. | |
Financial instruments | (c) Financial instruments Financial instruments – Classification Financial assets are classified at initial recognition as either: measured at amortized cost, FVTPL or fair value through other comprehensive income (“FVOCI”). The classification depends on the Company’s business model for managing the financial assets and the contractual terms which give rise to the cash flows. For assets measured at fair value, gains (losses) will either be recorded in earnings (loss) or other comprehensive income (“OCI”). For investments in debt instruments, this will depend on the business model for which the investment is held. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at FVOCI. The Company reclassifies debt investments when, and only when, its business model for managing those assets changes. Financial instruments – Measurement At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in the statement of loss and comprehensive loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments: ● Amortized cost – Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in earnings (loss) when the asset is derecognized or impaired. Interest income from these financial assets is included in interest and finance income using the effective interest rate method. ● FVOCI – Assets that are held for collection of contractual cash flows and for selling the financial assets, where those cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in earnings (loss). When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to earnings (loss) and recognized in other gains (losses). Interest income from these financial assets is included in interest and finance expense using the effective interest rate method. Foreign exchange gains and losses are presented in foreign exchange gain (loss) and impairment expenses in other expenses. ● FVTPL – Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL and is not part of a hedging relationship is recognized in earnings (loss) and presented net in the statement of loss and comprehensive loss within other gains (losses) in the period in which it arises. Changes in the fair value of financial assets at FVTPL are recognized in gain (loss) on change in fair value of financial instruments in the statement of loss and comprehensive loss as applicable. Financial instruments - Impairment An expected credit loss (“ECL”) impairment model applies which requires a loss allowance to be recognized based on ECLs. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in earnings (loss) for the period. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through earnings (loss) to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Financial instruments - Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of loss and comprehensive loss. Cash and cash equivalents Cash and cash equivalents comprise cash holdings in business and savings accounts held at major financial institutions with an original maturity date of three months or less. Cash and cash equivalents are classified at amortized cost. Interest and finance income is recognized by applying the effective interest rate method. Short-term investments Short-term investments comprise term deposits and redeemable short-term investment certificates (“RSTICs”) held at major financial institutions with an original maturity date between three and twelve months. Short-term investments are classified at amortized cost. Interest and finance income is recognized by applying the effective interest rate method. Marketable securities Marketable securities comprise of common shares of publicly traded companies. Marketable securities are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Changes in fair value at each reporting date are included in the statement of loss and comprehensive loss as gain (loss) on marketable securities. Accounts payable and accrued liabilities Accounts payable and accrued liabilities are recognized initially at fair value, net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are held at amortized cost using the effective interest method. Derivative liabilities Derivative instruments, including embedded derivatives in financial liabilities or non-financial contracts are recorded at FVTPL and, accordingly, are recorded on the statement of financial position at fair value. Fair values for derivative instruments are determined using valuation techniques, with assumptions based on market conditions existing at the statement of financial position date. Changes in fair value at each reporting date are included in the statement of loss and comprehensive loss as gain (loss) on change in fair value of derivative liability. | d. Financial instruments Classification The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives). Measurement Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. The Company’s accounts payables are classified at amortized cost. Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in consolidated statements of comprehensive income (loss). Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in profit or loss. The Company’s cash and marketable securities are classified as FVTPL. Financial assets at FVTOCI are initially recorded at fair value adjusted for transaction costs. Dividends are recognized as income in the consolidated statements of comprehensive income (loss) unless the dividend clearly represents a recovery of part of the cost of the investment. Gains or losses recognized on the sale of FVOTCI investment are recognized in other comprehensive income (loss) and are never reclassified to profit or loss. Impairment An ‘expected credit loss’ impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period. In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. Derecognition The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of comprehensive income (loss). |
Cash and cash equivalents | e. Cash and cash equivalents Cash and cash equivalents include cash in banks and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. | |
Property, plant and equipment | (d) Property and equipment Property and equipment is measured at cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated future cost of dismantling and removing the asset at the end of its useful life. The purchase price or construction cost is the fair value of consideration to acquire the asset. Depreciation of property and equipment commences when the asset has been fully commissioned and is available for its intended use. Depreciation is calculated using declining balance rates ranging from 15% to 30% per annum or the straight-line method to allocate cost over the estimated useful lives. Depreciation on assets that are directly related to E&E assets are allocated to that E&E asset. Depreciation methods and estimated useful lives and residual values are reviewed annually and when facts and circumstances indicate that a review should be performed. Changes in estimates are accounted for prospectively. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain (loss) arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the statement of loss and comprehensive loss. | f. Property, plant and equipment Property, plant and equipment, reported herein as fixed assets, are carried at cost, less accumulated amortization and accumulated impairment losses. Cost comprises the fair value of consideration given to acquire an asset and includes the direct expenditures associated with bringing the asset to the location and condition necessary for putting it into use along with the future cost of dismantling and removing the asset. When parts of an item of fixed assets have different useful lives, they are accounted for as separate items (major components) of fixed assets. Amortization is calculated over the useful life of the asset at rates ranging from 15% to 30% per annum once the asset is available for use. Amortization charges on assets that are directly related to mineral properties are allocated to that mineral property. |
Foreign currencies | (b) Foreign currency translation Functional currency Items included in the financial statements of each consolidated entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). For the parent entity, with the completion of the IPO on the NYSE American stock exchange, future equity financings are expected to generate proceeds denominated in United States dollars (“USD”). In addition, E&E expenditures and administrative costs incurred to conduct business activities are primarily denominated in USD. As a result of these changes in underlying transactions, events and circumstances, the functional currency of the parent entity was reassessed. The functional currency of the parent entity changed from the Canadian dollar (“CAD” or “C$”) to the USD commencing on December 31, 2022. The change in functional currency was accounted for on a prospective basis, with no impact of this change on prior year comparative information. The functional currency of the Company’s subsidiary remains the USD. Presentation currency On December 31, 2022, the Company elected to change its presentation currency from CAD to USD. The change in presentation currency is to better reflect the Company’s business activities and to improve investors’ ability to compare the Company’s financial results with other USA listed businesses in the mining industry. The Company applied the change to USD presentation currency retrospectively and restated the comparative financial information as if the new presentation currency had always been the Company’s presentation currency. From December 31, 2022, the USD presentation currency is consistent with the functional currency of the Company. For periods prior to December 31, 2022, the statements of financial position for each period presented have been translated from the CAD functional currency to the USD presentation currency at the rate of exchange prevailing at the respective financial position date with the exception of equity items which have been translated at accumulated historical rates from the Company’s date of incorporation in 2020. The statements of loss and comprehensive loss were translated at the average exchange rates for the reporting period, or at the exchange rate prevailing at the date of transactions. Exchange differences arising on translation from the CAD functional currency to the USD presentation currency prior to the change in functional currency to USD, have been recognized in other comprehensive income (loss) and accumulated as a separate component of equity. Transactions and balances Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses result from the settlement of foreign currency transactions and from the translation of monetary assets and liabilities denominated in currencies other than an entity’s functional currency. These gains (losses) are recognized in the statement of loss and comprehensive loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the date of the initial transactions. | g. Foreign currencies Transactions in currencies other than the functional currency are recorded at the rate of exchange prevailing on the dates of transactions. Monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at each reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign currency translation differences are recognized in profit or loss, except for differences on the retranslation of fair value through other comprehensive income (FVTOCI) instruments, which are recognized in other comprehensive (income)/ loss. |
Mineral property interests | (f) E&E assets All E&E expenditures are capitalized, including the costs of acquiring exploration stage properties, except for E&E expenditures incurred before the Company has obtained legal rights to explore an area, which are expensed. Exploration expenditures are costs incurred in the initial search for mineral deposits with economic potential or in the process of obtaining more information about existing mineral deposits. Exploration expenditures typically include costs associated with prospecting, sampling, mapping, drilling and other work involved in searching for Mineral Resources, as defined by Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Evaluation expenditures are the costs incurred to establish the technical feasibility and commercial viability of developing mineral deposits identified through exploration activities, business combinations or asset acquisitions. Evaluation expenditures include the cost of: (i) further defining the volume and grade of deposits through drilling of core samples and other sampling techniques, trenching and sampling activities in an ore body or other forms or data acquisition; (ii) determining the optimal methods of extraction and metallurgical and treatment processes; (iii) studies related to surveying, transportation and infrastructure requirements; (iv) permitting activities; and (v) economic evaluations to determine whether development or mineralized material is commercially justified including preliminary economic assessments (“PEA”), pre-feasibility and final feasibility studies. 3. SIGNIFICANT ACCOUNTING POLICIES (Continued) Once the technical feasibility and commercial viability of the extraction of mineral reserves or mineral resources from a particular mineral property has been determined, expenditures are tested for impairment and reclassified to mineral properties. The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, including: ● The extent to which mineral reserves and mineral resources as defined by NI 43-101 have been identified through a feasibility study or similar document; ● The results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study; ● The status of environmental permits; and ● The status of mining leases or permits. | h. Mineral property interests Expenditures on mineral exploration or evaluation incurred in respect of a property before the acquisition of a license to explore are expensed as incurred, to general exploration. Once the legal rights to explore a specific area have been obtained, expenditures on exploration and evaluation activities are capitalized as exploration and evaluation assets. Mineral property acquisition costs are included in exploration and evaluation and include any cash consideration and advance royalties paid, and the fair market value of shares issued, if any, on the acquisition of the mineral property interest. Properties acquired under option agreements, whereby payments are made at the sole discretion of the Company, are recorded in the accounts when the payments are made. Exploration expenditures relate to the initial search for deposits with economic potential and to detailed assessments of deposits or other projects that have been identified as having economic potential. All capitalized exploration and evaluation expenditures are monitored for indications of impairment. Where a potential impairment is indicated, assessments are performed for each area of interest. Once an economically viable reserve has been determined for an area and the decision to proceed with development has been approved, exploration and evaluation assets attributable to that area are first tested for impairment and then reclassified to property, plant and equipment. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers, or title may be affected by undetected defects. |
Impairment of non-current assets | i. Impairment of non-current assets At each reporting period, management reviews mineral interest and property, plant and equipment for indicators of impairment. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction. In assessing value in use, the estimated future cash flows are discounted to their present value. If the recoverable amount of the asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in the profit or loss for that period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which that asset belongs. Past impairments are also considered at each reporting period and where there is an indication that an impairment loss may have decreased, the recoverable amount is calculated as outlined above to determine the extent of the recovery. If the recoverable amount of the asset is more than its carrying amount, the carrying amount of the asset is increased to its recoverable amount and the impairment loss is reversed in the profit or loss for that period. The increased carrying amount due to reversal will not be more than what the depreciated historical cost would have been if the impairment had not been recognized. | |
Decommissioning obligations | (h) Decommissioning and restoration provision Decommissioning and restoration provisions are recognized when there is a significant disturbance to the areas in which E&E activities have occurred and when the provision can be estimated reliably. Decommissioning and restoration costs are estimated and discounted to their net present value and capitalized to the carrying amount of the related asset along with the recording of a corresponding liability, as soon as the obligation to incur such costs arises. The discount rate used to calculate the net present value is a pre-tax rate of similar maturity that reflects current market assessments of time value of money and the risks specific to the liability. Each period, the Company reviews cost estimates and other assumptions used in the valuation of the provision to reflect events, changes in circumstances and new information available. The liability is adjusted each reporting period for the unwinding of the discount, changes to the current market-based discount rate and for the amount or timing of the underlying cash flows needed to settle the provision. | j. Decommissioning obligations The Company recognizes liabilities for statutory, contractual, legal or constructive obligations associated with the retirement of property, plant and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. Initially, a provision for a decommissioning obligation is recognized at its net present value in the period in which it is incurred, using a discounted cash flow technique with market-based risk-free discount rates and estimates of the timing and amount of the settlement of the obligation. Upon initial recognition of the liability, the corresponding decommissioning cost is added to the carrying amount of the related asset. Following initial recognition of the decommissioning obligation, the carrying amount of the liability is increased for the passage of time and adjusted for changes to significant estimates including the current discount rate, the amount or timing of the underlying cash flows needed to settle the obligation and the requirements of the relevant legal and regulatory framework. Subsequent changes in the provisions resulting from new disturbance, updated cost estimates, changes to estimated lives of operations and revisions to discount rates are also capitalized to the related asset. Amounts capitalized are depreciated over the lives of the assets to which they relate. The amortization or unwinding of the discount applied in establishing the net present value of provisions is charged to expense and is included within finance costs in the consolidated statement of comprehensive loss. |
Other provisions | k. Other provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of past events, and it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. | |
Taxation | (i) Income taxes Income tax is recognized in the statement of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable earnings. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates at the end of the reporting year applicable to the year of expected realization. A deferred tax asset is recognized only to the extent that it is probable that future taxable earnings will be available against which the asset can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, when they relate to income taxes levied by the same taxation authority and when the Company intends to settle its current tax assets and liabilities on a net basis. | l. Taxation Income tax expense is comprised of current and deferred tax. Current tax and deferred taxes are recognized in the consolidated statements of comprehensive income (loss) except to the extent that they relate to items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date. Deferred tax is recognized in respect of unused tax losses and credits, as well as temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on enacted or substantively enacted laws at the reporting date. The Company computes the provision for deferred income taxes under the liability method. A deferred tax asset is recognized for unused tax losses, tax credits, and deductible temporary differences, only to the extent that it is probable that future taxable profits will be available against which they can be utilized. Where applicable, the probability of utilizing tax losses or credits is evaluated by considering risks relevant to future cash flows and the expiry dates after which these losses or credits can no longer be utilized. Deferred tax is not recognized for the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries, associates and joint arrangements to the extent that it is probable that they will not reverse in the foreseeable future. The Company is subject to assessments by various taxation authorities, who may interpret tax legislation differently from the Company. The final amount of taxes to be paid depends on a number of factors, including the outcomes of audits, appeals, or negotiated settlements. Such differences are accounted for based on management’s best estimate of the probable outcome of these matters. The Company must make significant estimates and judgments in respect of its provision for income taxes and the composition and measurement of its deferred income tax assets and liabilities. The Company’s operations are, in part, subject to foreign tax laws where interpretations, regulations and legislation are complex and continually changing. As a result, there are usually some tax matters in question that may, upon resolution in the future, result in adjustments to the amount of deferred income tax assets and liabilities; those adjustments may be material. |
Share capital | (j) Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares, share options and warrants are recognized as a deduction from equity, net of any tax effects. If common shares are issued as consideration for the acquisition of a mineral project, the common shares are measured at their fair value based on the quoted share price of the Company on the date the transaction is executed. The Company applies the residual value method with respect to the measurement of common shares and warrants issued as a unit for a private placement. The residual value method first allocates value to the more easily measurable component based on fair value (i.e. common shares) and then the residual value, if any, to the less measurable component (i.e. warrants). Any value attributed to the warrants is recorded to other reserves in equity. | m. Share capital Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the more easily measurable component based on fair value and then the residual value, if any, to the less measurable component. The Company considers the fair value of common shares issued in a unit private placement to be the more easily measurable component. The balance, if any, is allocated to the attached warrants. Any value attributed to the warrants is recorded as reserves. |
Share-based compensation | (k) Share-based payment transactions Share options granted under the Company’s equity settled share-based option plan are measured at fair value at the date of grant and recognized as an expense with a corresponding increase to other reserves in equity. An individual is classified as an employee when the individual is an employee for legal and tax purposes (direct employee) or provides services similar to those performed by a direct employee. Equity settled share-based payment transactions with non-employees are measured at the fair value of the goods or services received. However, if the fair value cannot be estimated reliably, the share-based payment transaction is measured at the fair value of the equity instrument granted at the date the non-employee provides the goods or the services. Fair value is determined using the Black-Scholes option pricing model, which relies on estimates of the risk-free interest rate, expected share price volatility, future dividend payments and the expected average life of the options. The fair value determined at the grant date is recognized as an expense over the vesting period in accordance with the vesting terms and conditions (graded vesting method), with a corresponding increase to other reserves in equity. When share options are exercised, the applicable amounts of other reserves are transferred to share capital. | n. Share-based compensation The Company’s stock option plan allows the Company’s directors, officers, employees, and consultants to acquire shares of the Company. The fair value of options granted is recognized as share-based compensation expense or capitalized to mineral interests with a corresponding increase in share-based payment reserves. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee. Where options are subject to vesting, each vesting tranche is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the grant date using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted. Share-based compensation expense is recognized over the tranche’s vesting period by a charge to profit or loss. For employees, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Compensation expense for share options granted to non-employees is recognized over the contract services period or, if none exists, from the date of grant until the options vest. Compensation associated with unvested options granted to non-employees is re-measured on each statement of financial position date. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of options that are expected to vest. In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, or where the fair value of goods or services received is not reliably measurable, they are measured at the fair value of the share-based compensation. Otherwise, share-based compensation is measured at the fair value of goods or services received. |
Loss per share | (l) Loss per share The Company presents loss per share data, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year. Diluted loss per share is determined by adjusting the loss attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive common shares, including share options and warrants. | o. Loss per share Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average common shares outstanding are increased to include additional shares for the assumed exercise of share options and share purchase warrants, if dilutive. The number of additional common shares is calculated by assuming that outstanding share options and share purchase warrants were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting periods. |
Related party transactions | (m) Related party transactions Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction where there is a transfer of resources or obligations between related parties. | p. Related party transactions Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction where there is a transfer of resources or obligations between related parties. |
Adoption of new accounting standards, interpretations and amendments | q. Adoption of new accounting standards, interpretations and amendments The Company has performed an assessment of new standards issued by the IASB that are not yet effective. The Company has assessed that the impact of adopting these accounting standards on its financial statements would not be significant |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of transactions between company and subsidiary | Place of Proportion of Name of subsidiary incorporation ownership interest Principal activity Austin American Corporation (“Austin NV”) Nevada, USA 100 % Holds interests in exploration projects | Proportion of Place of Ownership Name of Subsidiary Incorporation Interest Principal Activity Austin American Corporation Nevada, United States 100 % Exploration company |
MARKETABLE SECURITIES (Tables_2
MARKETABLE SECURITIES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
MARKETABLE SECURITIES | ||
Schedule of assumptions used for marketable securities | December 31, December 31, 2022 2021 Share price C$ 0.01 C$ 0.11 Exercise price C$ 0.50 C$ 0.50 Expected life 0.02 years 1.02 years Expected volatility 93.10 % 86.99 % Risk-free interest rate 4.30 % 0.25 % Expected dividend yield Nil Nil | December 31, 2021 December 31, 2020 Share price $ 0.11 $ 0.15 Exercise price $ 0.50 $ 0.50 Volatility 87 % 104 % Risk free interest rate 0.25 % 0.25 % Expected life 1.02 years 2.0 years Expected dividend yield $ nil $ nil |
EXPLORATION AND EVALUATION AS_2
EXPLORATION AND EVALUATION ASSETS (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
E&E ASSETS | ||
Schedule of exploration and evaluation assets | Kelly Fourmile Lone Miller Creek Basin Mountain Project Total $ $ $ $ $ Expenditures: Acquisition costs* 66,233 67,120 104,240 — 237,593 Consulting 24,870 15,406 4,519 — 44,795 Geology 1,642 — — — 1,642 Geophysics 9,642 651 — — 10,293 Mapping 1,889 — — — 1,889 Mining rights and claim fees 126,732 128,769 — — 255,501 Reports 40,618 — — — 40,618 Share-based compensation 32,567 227,966 32,567 — 293,100 Travel — 1,475 — — 1,475 Total exploration costs 304,193 441,387 141,326 — 886,906 Movement in foreign exchange (9,048) — (2,487) — (11,535) Balance at December 31, 2020 295,145 441,387 138,839 — 875,371 Expenditures: Acquisition costs* 63,000 43,412 37,800 78,300 222,512 Consulting 827 27,004 9,152 2,660 39,643 Field work — 2,337 — — 2,337 Finders fees — — — 12,630 12,630 Geophysics — — — 4,016 4,016 Mapping — 351 230 7,302 7,883 Mining rights and claim fees 120,907 69,309 101,266 145,189 436,671 Technical reports 1,426 7,759 14,287 — 23,472 Travel — 6,130 — — 6,130 Total exploration costs 186,160 156,302 162,735 250,097 755,294 Movement in foreign exchange 32 — 461 885 1,378 Balance at December 31, 2021 481,337 597,689 302,035 250,982 1,632,043 *Acquisition costs includes pre-production payments, lease payments, and advanced royalty payments | |
Kelly Creek | ||
E&E ASSETS | ||
Schedule of minimum expenditures to be incurred for exploration and development works | Original Amended September 1, 2021 $ 1,000,000 $ nil June 1, 2022 $ 1,000,000 $ nil September 1, 2022 $ nil $ 750,000 * June 1, 2023 $ 1,500,000 $ 1,000,000 June 1, 2024 $ 1,500,000 $ 1,500,000 June 1, 2025 $ nil $ 1,500,000 * $400,000 of which must be spent on geophysics, geochemistry, drilling, or other mutually agreed program. | |
Schedule of advance royalty payments | October 1, 2020 $ 20,000 Paid October 1, 2021 $ 20,000 Paid October 1, 2022 $ 20,000 Paid October 1, 2023 and every year thereafter $ 50,000 (1) (1) In accordance with the terms of the agreement, the amount will be adjusted for inflation. | October 1, 2020 US$ 20,000 (paid) October 1, 2021 US$ 20,000 (paid) October 1, 2022 US$ 20,000 October 1, 2023 and annually thereafter US$ 50,000 (as adjusted for inflation) |
Fourmile Basin | ||
E&E ASSETS | ||
Schedule of minimum expenditures to be incurred for exploration and development works | Year 1 from Effective Date US$ 30,000 (fulfilled) Year 2 to Year 3 from Effective Date US$ 50,000 ( $34,000 fulfilled as at December 31, 2021) October 24, 2020 US$ 5,000 (fulfilled) October 24, 2021 US$ 10,000 (fulfilled) October 24, 2022 US$ 15,000 (fulfilled) October 24, 2023 US$ 20,000 (US $10,000 fulfilled) October 24, 2024 and every year thereafter US$ 20,000 | |
Schedule of advance royalty payments | October 24, 2020 $ 10,000 Paid October 24, 2021 $ 15,000 Paid October 24, 2022 $ 20,000 Paid October 24, 2023 and every year thereafter $ 25,000 | October 24, 2020 US$ 10,000 (paid) October 24, 2021 US$ 15,000 (paid) October 24, 2022 US$ 20,000 October 24, 2023 and every year thereafter US$ 25,000 |
Schedule of pre-production payments | June 18, 2020 $ 25,000 Paid 33,333 common shares Issued December 18, 2020 $ 5,000 Paid June 18, 2021 $ 10,000 Paid December 18, 2021 $ 10,000 Paid June 18, 2022 $ 15,000 Paid December 18, 2022 and every six months thereafter $ 20,000 Paid | Effective Date US$ 25,000 cash (paid) 33,333 Company shares (issued) 6 months after Effective Date (December 18, 2020) US$ 5,000 cash (paid) 12 months after Effective Date (June 18, 2021) US$ 10,000 cash (paid) 18 months after Effective Date (December 18, 2021) US$ 10,000 cash (paid) 24 months after Effective Date (June 18, 2022) US$ 15,000 cash 30 months after Effective Date and every 6 months thereafter US$ 20,000 cash |
Lone Mountain | ||
E&E ASSETS | ||
Schedule of minimum expenditures to be incurred for exploration and development works | Original Amended September 1, 2021 US$ 150,000 US$ nil September 1, 2022 US$ 250,000 US$ 400,000 September 1, 2023 US$ 300,000 US$ 300,000 September 1, 2024 US$ 300,000 US$ 300,000 September 1, 2025 US$ 400,000 US$ 400,000 September 1, 2026 US$ 400,000 US$ 400,000 | |
Schedule of pre-production payments | Signing of the lease $ 80,000 Paid November 1, 2021 $ 30,000 Paid November 1, 2022 $ 20,000 Paid November 1, 2023 $ 20,000 November 1, 2024 $ 30,000 November 1, 2025 and every year thereafter (1) $ 30,000 (1) Pre-production payments increase by $10,000 every year after November 1, 2025 to a maximum of $200,000 . | Within 5 days of signing the lease US$ 80,000 (paid) November 1, 2021 US$ 30,000 (paid) November 1, 2022 US$ 30,000 November 1, 2023 US$ 30,000 November 1, 2024 US$ 40,000 November 1, 2025 and each year thereafter Increasing by US $10,000 /year thereafter to a maximum of US $200,000 |
Miller Project | ||
E&E ASSETS | ||
Schedule of annual lease payments | Signing of the lease $ 50,000 Paid 5,000 common shares Issued February 1, 2022 $ 25,000 Paid February 1, 2023 $ 25,000 Paid (1) February 1, 2024 and every year thereafter $ 30,000 (2) (1) The amount was paid subsequent to December 31, 2022. (2) Lease payments of $30,000 are required every year after February 1, 2024, until a total of $500,000 has been paid. | Within 5 days of signing the lease US$ 50,000 (paid) 5,000 Company shares (issued) February 1, 2022 US$ 25,000 (subsequently paid) February 1, 2023 US$ 25,000 February 1, 2024 and each year thereafter US $30,000 until a total of US $500,000 has been paid |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT | ||
Schedule of fixed assets | Computer equipment Net book value - December 31, 2020 $ 2,564 Depreciation (780) Movement in foreign exchange 19 Net book value - December 31, 2021 1,803 Depreciation (527) Movement in foreign exchange (95) Net book value - December 31, 2022 1,181 | Computer Equipment $ Balance April 21, 2020 — Additions 3,841 Depreciation (576) Balance December 31, 2020 3,265 Depreciation (980) Balance December 31, 2021 2,285 |
SHARE CAPITAL AND OPTION RESE_2
SHARE CAPITAL AND OPTION RESERVES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE CAPITAL AND OTHER RESERVES | ||
Schedule of number of options and weighted average exercise price | 2022 2021 Weighted Weighted Number of average Number of average share options exercise price share options exercise price Outstanding, January 1, 716,663 $ 2.37 716,663 $ 2.36 Granted 460,003 0.92 — — Expired (83,333) 2.36 — — Outstanding, December 31, 1,093,333 $ 1.67 716,663 $ 2.37 | Number of share Weighted average options exercise price $ Balance April 21, 2020 — — Granted 716,663 3.00 Outstanding as at December 31, 2020 716,663 3.00 Outstanding as at December 31, 2021 716,663 3.00 |
Schedule of share options were outstanding and exercisable | Share options outstanding Share options exercisable Number of Weighted Number of Weighted share options average years share options average Exercise prices outstanding to expiry exercisable exercise price $0.50 - $1.00 460,003 4.82 114,994 0.92 $2.01 - $2.50 633,330 7.20 633,330 $ 2.22 1,093,333 6.20 748,324 $ 2.02 | At December 31, 2021, the following share options were outstanding and exercisable: Number of share Exercise price per options share Expiry Date $ $ 716,663 3.00 December 2, 2030 Number of share options December 31, 2021 Weighted average exercise price for exercisable options $ 3.00 Weighted average share price for options exercised — Weighted average years to expiry for exercisable options 8.93 years |
COMMITMENTS (Tables)_2
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS. | |
Schedule of introductory agent fee | Within 15 days of acquisition US$ 5,000 6 months after acquisition US$ 5,000 12 months after acquisition US$ 5,000 18 months after acquisition US$ 5,000 24 months after acquisition US$ 7,500 30 months after acquisition US$ 7,500 36 months after acquisition US$ 10,000 42 months after acquisition US$ 10,000 48 months after acquisition US$ 15,000 Every 6 months thereafter US$ 15,000 |
RELATED PARTY TRANSACTIONS AN_6
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
Schedule of compensation to key management personnel | For the year ended December 31, December 31, 2022 2021 Management and consulting fees $ 559,591 $ 12,206 Share-based compensation 136,148 — Directors’ fees 44,380 — $ 740,119 $ 12,206 | Compensation 2021 2020 $ $ Management fees (i) 6,000 2,000 Accounting fees (ii) 9,300 — Share-based payments (iii) — 1,807,450 15,300 1,809,450 (i) Management fees are compensation paid to an officer of the Company. (ii) Accounting fees are fees paid to the CFO for preparation of the financial statements. (iii) Share-based payment is the fair value of options granted and vested. |
FINANCIAL INSTRUMENT RISK (Tabl
FINANCIAL INSTRUMENT RISK (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
FINANCIAL RISK MANAGEMENT | ||
Schedule of Company's financial assets measured at fair value on a recurring basis | Fair Value Measurements Using Balance as at Level 1 Level 2 Level 3 December 31, 2021 $ $ $ $ Assets Cash 1,387,670 — — 1,387,670 Marketable securities 245,410 — 4,152 249,562 Total assets measured at fair value 1,633,880 — 4,152 1,637,232 Fair Value Measurements Using Balance as at Level 1 Level 2 Level 3 December 31, 2020 $ $ $ $ Assets Cash 2,421,796 — — 2,421,796 Marketable securities 375,000 — 51,109 426,109 Total assets measured at fair value 2,796,796 — 51,109 2,847,905 | |
Schedule of maturity analysis of financial instrument liabilities | Carrying Contractual Due within Due within Due within amount cash flows 1 year 2 years 3 years Accounts payable and accrued liabilities $ 97,825 $ 97,825 $ 97,825 $ — $ — $ 97,825 $ 97,825 $ 97,825 $ — $ — | Carrying Contractual Within Within Within Amount Cash Flows 1 year 2 years 3 years $ $ $ $ $ Accounts payable and accrued liabilities 77,048 77,048 77,048 — — Total as at December 31, 2021 77,408 77,048 77,048 — — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
TAXATION | ||
Schedule of effective income tax rate reconciliation | For the year ended December 31, December 31, 2022 2021 Tax loss carry forwards $ 332,184 $ 99,672 Share issuance costs 288,230 — Marketable securities and other 74,568 41,908 Deferred income taxes not recognized (694,982) (141,580) $ — $ — | December 31, December 31, 2021 2020 $ $ Net income (loss) before income taxes (502,779) (2,070,249) Income tax recovery based on effective rate of 27% (2020 – 27% ) (135,750) (551,850) Permanent differences and others 26,856 479,127 Change in deferred tax assets not recognized 108,894 72,723 Net deferred tax (recovery) — — |
Schedule of deductible temporary differences for which deferred income tax assets have not been recognized | For the year ended December 31, December 31, 2022 2021 Expected income tax recovery $ (288,466) $ (108,298) Share issuance costs (298,176) — Impact of difference in tax rates and other (10,670) 21,425 Share-based compensation 43,910 — Deferred income taxes not recognized 553,402 86,873 $ — $ — | December 31, December 31, 2021 2020 $ $ Non-capital loss carry-forwards 128,486 53,142 Marketable securities and others 53,131 19,581 Deferred tax assets not recognized (181,617) (72,723) — — |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Basis of consolidation (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of subsidiaries [line items] | ||
Proportion of Ownership Interest (in percent) | 50% | |
Austin American Corporation | ||
Disclosure of subsidiaries [line items] | ||
Proportion of Ownership Interest (in percent) | 100% | 100% |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - Property, plant and equipment (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum | ||
E&E ASSETS | ||
Useful life (in percent) | 15% | 15% |
Maximum | ||
E&E ASSETS | ||
Useful life (in percent) | 30% | 30% |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) | 8 Months Ended | 12 Months Ended | |||||||||
Jul. 07, 2020 CAD ($) D $ / shares shares | Dec. 31, 2020 CAD ($) $ / shares D shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2021 CAD ($) shares | Dec. 31, 2022 USD ($) Y shares | Dec. 31, 2021 USD ($) | Dec. 31, 2021 Y | Dec. 31, 2021 | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 $ / shares | Dec. 31, 2021 D | |
MARKETABLE SECURITIES | |||||||||||
Number of shares sold | 269,000 | 269,000 | |||||||||
Net proceeds from sale of shares | $ 38,632 | $ 48,425 | |||||||||
Realized gain on sale of marketable securities | $ 6,443 | $ 8,075 | |||||||||
Number of shares held | 2,500,000 | 2,231,000 | 2,231,000 | 2,231,000 | |||||||
Estimated fair value of shares | $ | $ 375,000 | $ 245,410 | |||||||||
Number of warrants held | 1,250,000 | 1,250,000 | |||||||||
Estimated fair value of warrants | 51,109 | $ 1 | $ 3,275 | $ 4,152 | |||||||
Unrealized loss on marketable securities | $ | $ 73,891 | $ 136,197 | |||||||||
Share price | |||||||||||
MARKETABLE SECURITIES | |||||||||||
Measurement input | $ / shares | 0.15 | 0.11 | |||||||||
Exercise price | |||||||||||
MARKETABLE SECURITIES | |||||||||||
Measurement input | $ / shares | 0.50 | 0.50 | |||||||||
Volatility | |||||||||||
MARKETABLE SECURITIES | |||||||||||
Measurement input | 1.04 | 0.9310 | 0.8699 | ||||||||
Risk free interest rate | |||||||||||
MARKETABLE SECURITIES | |||||||||||
Measurement input | 0.0025 | 0.0430 | 0.0025 | ||||||||
Expected life | |||||||||||
MARKETABLE SECURITIES | |||||||||||
Measurement input | 2 | 0.02 | 1.02 | 1.02 | |||||||
Marketable securities | |||||||||||
MARKETABLE SECURITIES | |||||||||||
Number of units purchases | 2,500,000 | ||||||||||
Purchase price per unit | $ / shares | $ 0.20 | ||||||||||
Cost of units purchased | $ | $ 500,000 | ||||||||||
Number of shares in a unit | 1 | ||||||||||
Number of warrants in a unit | 0.5 | ||||||||||
Number of shares entitled in each warrant | 1 | ||||||||||
Price of warrant | $ / shares | $ 0.50 | ||||||||||
Period of warrants (in months) | 30 months | ||||||||||
Minimum volume weighted average price or the closing price | $ / shares | $ 0.90 | ||||||||||
Number of consecutive trading days | 10 days | ||||||||||
Warrants expiry date after the date of notice to entity with certificates representing warrants | D | 30 |
EXPLORATION AND EVALUATION AS_3
EXPLORATION AND EVALUATION ASSETS (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CAD ($) |
Expenditures: | |||||
Acquisition costs | $ 222,512 | $ 237,593 | |||
Consulting | 39,643 | 44,795 | |||
Geology | 1,642 | ||||
Field work | 2,337 | ||||
Finders fees | 12,630 | ||||
Geophysics | 4,016 | 10,293 | |||
Mapping | 7,883 | 1,889 | |||
Mining rights and claim fees | 436,671 | 255,501 | |||
Reports | 40,618 | ||||
Share-based compensation | 293,100 | ||||
Technical reports | 23,472 | ||||
Travel | 6,130 | 1,475 | |||
Total exploration costs | 755,294 | 886,906 | |||
Movement in foreign exchange | 1,378 | (11,535) | |||
Balance | $ 2,369,034 | $ 1,286,156 | 1,632,043 | $ 686,737 | 875,371 |
Kelly Creek | |||||
Expenditures: | |||||
Acquisition costs | 63,000 | 66,233 | |||
Consulting | 827 | 24,870 | |||
Geology | 1,642 | ||||
Geophysics | 9,642 | ||||
Mapping | 1,889 | ||||
Mining rights and claim fees | 120,907 | 126,732 | |||
Reports | 40,618 | ||||
Share-based compensation | 32,567 | ||||
Technical reports | 1,426 | ||||
Total exploration costs | 186,160 | 304,193 | |||
Movement in foreign exchange | 32 | (9,048) | |||
Balance | 914,879 | 379,154 | 481,337 | 231,414 | 295,145 |
Fourmile Basin | |||||
Expenditures: | |||||
Acquisition costs | 43,412 | 67,120 | |||
Consulting | 27,004 | 15,406 | |||
Field work | 2,337 | ||||
Geophysics | 651 | ||||
Mapping | 351 | ||||
Mining rights and claim fees | 69,309 | 128,769 | |||
Share-based compensation | 227,966 | ||||
Technical reports | 7,759 | ||||
Travel | 6,130 | 1,475 | |||
Total exploration costs | 156,302 | 441,387 | |||
Balance | 704,531 | 471,438 | 597,689 | 346,675 | 441,387 |
Lone Mountain | |||||
Expenditures: | |||||
Acquisition costs | 37,800 | 104,240 | |||
Consulting | 9,152 | 4,519 | |||
Mapping | 230 | ||||
Mining rights and claim fees | 101,266 | ||||
Share-based compensation | 32,567 | ||||
Technical reports | 14,287 | ||||
Total exploration costs | 162,735 | 141,326 | |||
Movement in foreign exchange | 461 | (2,487) | |||
Balance | 350,738 | 237,727 | 302,035 | $ 108,648 | $ 138,839 |
Miller Project | |||||
Expenditures: | |||||
Acquisition costs | 78,300 | ||||
Consulting | 2,660 | ||||
Finders fees | 12,630 | ||||
Geophysics | 4,016 | ||||
Mapping | 7,302 | ||||
Mining rights and claim fees | 145,189 | ||||
Total exploration costs | 250,097 | ||||
Movement in foreign exchange | 885 | ||||
Balance | $ 302,840 | $ 197,837 | $ 250,982 |
EXPLORATION AND EVALUATION AS_4
EXPLORATION AND EVALUATION ASSETS - Kelly Creek Project (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 01, 2025 CAD ($) | Jun. 01, 2024 CAD ($) | Jun. 01, 2023 CAD ($) | Sep. 01, 2022 CAD ($) | Jun. 01, 2022 CAD ($) | Sep. 01, 2021 CAD ($) | Mar. 03, 2021 | Jul. 07, 2020 agreement | May 29, 2020 CAD ($) $ / shares shares | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | Dec. 31, 2021 USD ($) mi² | Dec. 31, 2022 USD ($) mi² agreement | Dec. 31, 2021 USD ($) mi² | Dec. 31, 2021 CAD ($) | Sep. 16, 2021 USD ($) | Sep. 16, 2020 USD ($) | |
E&E ASSETS | ||||||||||||||||||
Percentage of interest in a joint venture | 70% | |||||||||||||||||
Extension period for other deadlines | 1 year | |||||||||||||||||
Kelly Creek | ||||||||||||||||||
E&E ASSETS | ||||||||||||||||||
Percentage of interest in a joint venture | 70% | 70% | 70% | 51% | 51% | |||||||||||||
Number of units purchases | shares | 2,500,000 | |||||||||||||||||
Purchase price per unit | $ / shares | $ 0.20 | |||||||||||||||||
Cost of units purchased | $ 500,000 | |||||||||||||||||
Minimum yearly expenditures toward exploration and development work, Original | $ 1,500,000 | $ 1,500,000 | $ 1,000,000 | $ 1,000,000 | ||||||||||||||
Minimum yearly expenditures toward exploration and development work Amended | $ 1,500,000 | $ 1,500,000 | $ 1,000,000 | $ 750,000 | ||||||||||||||
Amended minimum yearly expenditures, which must be spent on geophysics, geochemistry, drilling, or other mutually agreed program | $ 400,000 | |||||||||||||||||
Percentage of additional participating interest in JV | 19% | 19% | ||||||||||||||||
Additional yearly expenditures to be incurred before each of June 1, 2026, June 1, 2027 and June 1, 2028 | $ 1,500,000 | |||||||||||||||||
Number of days for transfer of participating JV interest | 120 days | 120 days | ||||||||||||||||
Percentage of interest in the Joint Venture to be transferred by Pediment to Austin NV | 5% | 5% | ||||||||||||||||
Threshold diluted percentage of interest in the Joint Venture, for conversion to net profits interest | 10% | 10% | ||||||||||||||||
Percentage of net profit interest upon dilution of participating interest to 10% | 10% | 10% | ||||||||||||||||
Number of royalty agreements | agreement | 2 | 2 | ||||||||||||||||
Kelly Creek | Genesis agreement | ||||||||||||||||||
E&E ASSETS | ||||||||||||||||||
Percentage of Genesis claims that can be purchased | 100% | 100% | 100% | |||||||||||||||
Purchase price of Genesis claims | $ 1,500,000 | $ 1,500,000 | ||||||||||||||||
Percentage of net smelter return royalty | 1.50% | 1.50% | 1.50% | |||||||||||||||
Advance royalty payments made | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,000 | ||||||||||||||
Advance royalty payments to be made, October 1, 2022 | 20,000 | $ 20,000 | ||||||||||||||||
October 1, 2023 and every year thereafter | 50,000 | $ 50,000 | 50,000 | |||||||||||||||
Purchase price of the net smelter return royalty that can be bought | $ 750,000 | |||||||||||||||||
Percentage of net smelter return royalty upon payment of specified amount | 0.75% | 0.75% | 0.75% | |||||||||||||||
Payment to reduce net smelter return royalty | $ 750,000 | |||||||||||||||||
Kelly Creek | Hot Pot agreement | ||||||||||||||||||
E&E ASSETS | ||||||||||||||||||
Percentage of net smelter return royalty | 3% | 3% | 3% | |||||||||||||||
Percentage of net smelter return royalty that can be bought | 0.50% | 0.50% | ||||||||||||||||
Percentage of net smelter return royalty upon payment of specified amount | 2% | 2% | 2% | |||||||||||||||
Annual payment due on September 16th each year | $ 30,000 | $ 30,000 | ||||||||||||||||
Payment to reduce net smelter return royalty | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||||||||||
Kelly Creek | Hot Pot agreement | Battle Mountain Gold Exploration Corporation | ||||||||||||||||||
E&E ASSETS | ||||||||||||||||||
Percentage of net smelter return royalty | 1.25% | 1.25% | 1.25% | |||||||||||||||
Area within the original boundary of the Hot Pot property, considered for royalty payments | mi² | 2.5 | 2.5 | 2.5 |
EXPLORATION AND EVALUATION AS_5
EXPLORATION AND EVALUATION ASSETS - Fourmile Basin Property (Details) - Fourmile Basin | 12 Months Ended | ||||||||||||
Oct. 24, 2022 USD ($) | Jun. 18, 2022 USD ($) | Dec. 18, 2021 USD ($) | Oct. 24, 2021 USD ($) | Jun. 18, 2021 USD ($) | Dec. 18, 2020 USD ($) shares | Nov. 07, 2020 USD ($) | Oct. 24, 2020 USD ($) | Jun. 18, 2020 USD ($) shares | Dec. 31, 2021 USD ($) T | Dec. 31, 2021 CAD ($) T | Oct. 24, 2024 USD ($) | Oct. 24, 2023 USD ($) | |
Fourmile Mineral Lease | |||||||||||||
E&E ASSETS | |||||||||||||
Primary term of the lease | 35 years | ||||||||||||
Maximum extension term of the lease | 50 years | 50 years | |||||||||||
Pre-production payments made in cash | $ 15,000 | $ 10,000 | $ 10,000 | $ 5,000 | $ 25,000 | ||||||||
Pre-production payments made in shares | shares | 33,333 | 33,333 | |||||||||||
Pre-production payments to be made 24 months after Effective Date (June 18, 2022) | $ 20,000 | ||||||||||||
Minimum exploration costs to be incurred, Year 1 from Effective Date, Fulfilled | $ 30,000 | ||||||||||||
Minimum exploration costs to be incurred, Year 2 to Year 3 from Effective Date | $ 50,000 | ||||||||||||
Minimum exploration costs to be incurred, Year 2 to Year 3 from Effective Date, Fulfilled | $ 34,000 | ||||||||||||
Percentage of net smelter return royalty | 2% | 2% | |||||||||||
Percentage of net smelter return royalty for third-pay claims | 0.50% | 0.50% | |||||||||||
Reduction in net smelter return royalty upon payment of specified amount | 50% | 50% | |||||||||||
Percentage of net smelter return royalty for third-pay claims upon payment of specified amount | 0.25% | 0.25% | |||||||||||
Threshold minimum production royalties to be paid per quarter | $ 25,000 | ||||||||||||
Fourmile Mineral Lease | La Cuesta International, Inc. ("LCI") | |||||||||||||
E&E ASSETS | |||||||||||||
Percentage of claims owned | 100% | 100% | |||||||||||
Payment to reduce net smelter return royalty | $ 10,000,000 | ||||||||||||
Percentage of net smelter return royalty upon payment of specified amount | 1% | 1% | |||||||||||
NexGen Lease | |||||||||||||
E&E ASSETS | |||||||||||||
Required work commitment expenditures fulfilled | $ 15,000 | $ 10,000 | $ 5,000 | $ 10,000 | |||||||||
Required work commitment expenditures to be fulfilled on October 24, 2023 | $ 20,000 | ||||||||||||
Required work commitment expenditures to be fulfilled on October 24, 2024 and every year thereafter | $ 20,000 | ||||||||||||
Minimum sustained rate of production per day (in tons) | T | 100 | 100 | |||||||||||
Amount of work expenditures incurred by a prior lessee agreed to be applied against the Company's expenditure requirements | $ 40,000 | ||||||||||||
Amount of October 2023 expenditures satisfied by applying prior lessee's work expenditure by NexGen | $ 10,000 | ||||||||||||
Advance royalty payments made | $ 15,000 | $ 10,000 | |||||||||||
Advance royalty payments to be made, October 24, 2022 | 20,000 | ||||||||||||
Advance royalty payments to be made, October 24, 2023 and every year thereafter | $ 25,000 | ||||||||||||
Percentage of net smelter return royalty that can be bought | 2% | 2% | |||||||||||
Purchase price of the first 1% of net smelter return royalty that can be bought | $ 250,000 | ||||||||||||
Purchase price of the remaining 1% of net smelter return royalty that can be bought | $ 500,000 |
EXPLORATION AND EVALUATION AS_6
EXPLORATION AND EVALUATION ASSETS - Lone Mountain Project (Details) - Lone Mountain | 12 Months Ended | ||||
Nov. 01, 2022 USD ($) | Nov. 01, 2021 USD ($) | Nov. 01, 2020 USD ($) oz | Dec. 31, 2022 USD ($) oz | Apr. 29, 2021 USD ($) | |
E&E ASSETS | |||||
Primary term of the lease | 10 years | ||||
Maximum extension term of the lease | 10 years | ||||
Percentage of net smelter return royalty | 3% | 3% | |||
Percentage of net smelter return royalty that can be bought | 0.50% | ||||
Purchase price of the net smelter return royalty that can be bought | $ 2,000,000 | ||||
Percentage of net smelter return royalty upon payment of specified amount | 2.50% | 2.50% | |||
Threshold minimum gold to be discovered to trigger the option to purchase the entire interest in project (in ounces) | oz | 500,000 | 500,000 | |||
Purchase price of entire interest in project | $ 2,000,000 | ||||
Pre-production payments made in cash | $ 20,000 | $ 30,000 | 80,000 | ||
Pre-production payments to be made, November 1, 2022 | 30,000 | ||||
Pre-production payments to be made, November 1, 2023 | 30,000 | $ 20,000 | |||
Pre-production payments to be made, November 1, 2024 | 40,000 | 30,000 | |||
Maximum pre-production payments to be made, November 1, 2025 and each year thereafter | 10,000 | 200,000 | |||
Incremental pre-production payments to be made, each year thereafter | 200,000 | 10,000 | |||
Annual work commitments, September 1, 2021 | 150,000 | $ 0 | |||
Annual work commitments, September 1, 2022 | 250,000 | 400,000 | |||
Annual work commitments, September 1, 2023 | 300,000 | 300,000 | |||
Annual work commitments, September 1, 2024 | 300,000 | 300,000 | |||
Annual work commitments, September 1, 2025 | 400,000 | 400,000 | |||
Annual work commitments, September 1, 2026 | $ 400,000 | $ 400,000 | |||
Threshold amount of expenditure considered for termination of work commitment | $ 1,800,000 | $ 1,800,000 |
EXPLORATION AND EVALUATION AS_7
EXPLORATION AND EVALUATION ASSETS - Miller Project (Details) | 12 Months Ended | |||||
Feb. 01, 2023 USD ($) | Feb. 01, 2022 USD ($) | Feb. 01, 2021 USD ($) shares | Dec. 17, 2020 USD ($) km² claim m shares | Dec. 31, 2022 USD ($) km² claim m | Dec. 31, 2021 USD ($) | |
E&E ASSETS | ||||||
Total number of unpatented lode mining claims | claim | 281 | |||||
Miller Project | ||||||
E&E ASSETS | ||||||
Primary term of the lease | 35 years | |||||
First work commitment (in meters) | m | 2,000 | 2,000 | ||||
Period after the Listing Date within which the first work commitment is to be fulfilled | 18 months | |||||
Second work commitment (in meters) | m | 3,000 | 3,000 | ||||
Period after the Listing Date within which the second work commitment is to be fulfilled | 36 months | |||||
Percentage of net smelter return royalty | 2% | 2% | ||||
Percentage of net smelter return royalty that can be bought | 1% | 0.50% | ||||
Purchase price of the net smelter return royalty that can be bought | $ 2,000,000 | $ 500,000 | ||||
Percentage of net smelter return royalty upon payment of specified amount | 1% | 1% | ||||
Percentage of net smelter return royalty, if the Company options or purchases claims within the area of influence from third parties | 0.50% | 2% | ||||
Annual lease payments made | $ 25,000 | $ 50,000 | $ 50,000 | |||
Annual lease payments made in shares | shares | 5,000 | 5,000 | ||||
Annual lease payments to be made, February 1, 2024 and each year thereafter | $ 30,000 | $ 30,000 | ||||
Maximum annual lease payments to be made, thereafter | 500,000 | $ 500,000 | ||||
Purchase price of entire interest in project | $ 500,000 | |||||
Number of claims in the original lease agreement | claim | 117 | 117 | ||||
Number of additional claims staked in | claim | 164 | 164 | ||||
Total number of unpatented lode mining claims | claim | 281 | |||||
Area of unpatented lode mining claims (in km2) | km² | 23.5 | 23.5 | ||||
Number of newly staked claims under dispute | claim | 134 | 134 | ||||
Number of original claims under dispute | claim | 36 | 36 | ||||
Acquisition costs capitalized | $ 88,888 | |||||
Miller Project | Payment of lease liabilities | ||||||
E&E ASSETS | ||||||
Annual lease payments made | $ 25,000 | |||||
Annual lease payments to be made, February 1, 2023 | $ 25,000 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | |
Reconciliation | ||||
Balance at the beginning | $ 1,803 | $ 2,564 | $ 3,265 | |
Balance at the end | $ 3,265 | 1,181 | 1,803 | 2,285 |
Computer equipment [member] | ||||
Reconciliation | ||||
Balance at the beginning | 1,803 | 2,564 | 3,265 | |
Additions | 3,841 | |||
Depreciation | (576) | (527) | (780) | (980) |
Balance at the end | $ 3,265 | $ 1,181 | $ 1,803 | $ 2,285 |
SHARE CAPITAL AND OPTION RESE_3
SHARE CAPITAL AND OPTION RESERVES - General (Details) | Oct. 25, 2021 |
SHARE CAPITAL AND OTHER RESERVES | |
Stock consolidation | 3 |
SHARE CAPITAL AND OPTION RESE_4
SHARE CAPITAL AND OPTION RESERVES - Authorized and issued share capital (Details) | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||||||
Feb. 02, 2021 shares | Jul. 19, 2020 shares | Jul. 31, 2020 USD ($) $ / shares shares | Jul. 31, 2020 CAD ($) $ / shares shares | Jun. 30, 2020 USD ($) $ / shares shares | Jun. 30, 2020 CAD ($) $ / shares shares | Apr. 30, 2020 USD ($) $ / shares shares | Dec. 31, 2020 CAD ($) | Dec. 31, 2022 USD ($) | |
Authorized and issued share capital | |||||||||
Gross proceeds | $ 3,660,671 | $ 15,019,000 | |||||||
Issuance of share capital per lease agreement | |||||||||
Authorized and issued share capital | |||||||||
Issuance of shares (in shares) | 5,000 | 33,333 | |||||||
Issuance of founders shares at US$0.015 per common share | |||||||||
Authorized and issued share capital | |||||||||
Issuance of shares (in shares) | 6,666,668 | ||||||||
Price per common share | $ / shares | $ 0.015 | ||||||||
Gross proceeds | $ | $ 100,000 | ||||||||
Private placement at US$0.30 per common share | |||||||||
Authorized and issued share capital | |||||||||
Issuance of shares (in shares) | 1,083,333 | 1,083,333 | |||||||
Price per common share | $ / shares | $ 0.30 | ||||||||
Gross proceeds | $ | $ 325,000 | ||||||||
Private placement at US$0.75 per common share | |||||||||
Authorized and issued share capital | |||||||||
Issuance of shares (in shares) | 66,667 | 66,667 | 861,999 | 861,999 | |||||
Price per common share | $ / shares | $ 0.75 | $ 0.75 | |||||||
Gross proceeds | $ | $ 50,000 | $ 646,500 | |||||||
Private placement at $1.05 per common share | |||||||||
Authorized and issued share capital | |||||||||
Issuance of shares (in shares) | 133,333 | 133,333 | |||||||
Price per common share | $ / shares | $ 1.05 | ||||||||
Gross proceeds | $ | $ 140,000 | ||||||||
Private placement at $3.00 per common share | |||||||||
Authorized and issued share capital | |||||||||
Issuance of shares (in shares) | 666,667 | 666,667 | |||||||
Price per common share | $ / shares | $ 3 | ||||||||
Gross proceeds | $ | $ 2,000,000 |
SHARE CAPITAL AND OPTION RESE_5
SHARE CAPITAL AND OPTION RESERVES - Stock options (Details) | 8 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 $ / shares | Dec. 31, 2020 CAD ($) Option $ / shares | Dec. 31, 2022 USD ($) Option Y $ / shares | Dec. 31, 2021 Option $ / shares | Dec. 31, 2021 Option $ / shares | Dec. 31, 2020 CAD ($) Option Y $ / shares | |
Stock options | ||||||
Share-based compensation | $ 1,807,450 | $ 162,628 | ||||
Share-based compensation capitalized to mineral interests | $ | $ 26,173 | |||||
Number of share options | ||||||
Balance beginning | Option | 716,663 | 716,663 | 716,663 | |||
Granted | Option | 460,003 | |||||
Balance ending | Option | 716,663 | 1,093,333 | 716,663 | 716,663 | 716,663 | |
Weighted average exercise price | ||||||
Balance beginning | $ / shares | $ 2.37 | $ 2.36 | ||||
Granted | $ / shares | 0.92 | 0 | ||||
Balance ending | $ / shares | $ 2.36 | $ 1.67 | $ 2.37 | |||
Volatility | 143.18% | |||||
Risk-free interest rate | 4.09% | |||||
Expected life | Y | 5 | |||||
Stock option plan | ||||||
Stock options | ||||||
Issuance of options on issued and outstanding common shares | 10% | 10% | ||||
Term of vesting options (in years) | 10 years | 10 years | ||||
Share-based compensation | $ | $ 1,807,450 | |||||
Share-based compensation capitalized to mineral interests | $ | $ 293,100 | |||||
Number of share options | ||||||
Balance beginning | Option | 0 | 716,663 | 716,663 | 716,663 | ||
Granted | Option | 716,663 | 0 | 0 | |||
Balance ending | Option | 716,663 | 716,663 | 716,663 | 716,663 | ||
Weighted average exercise price | ||||||
Balance beginning | $ / shares | $ 0 | $ 3 | ||||
Granted | (per share) | $ 3 | 3 | $ 0 | |||
Balance ending | $ / shares | $ 3 | $ 3 | $ 3 | |||
Share price | $ / shares | $ 3 | |||||
Volatility | 141.595% | |||||
Risk-free interest rate | 1.74% | |||||
Expected life | Y | 10 | |||||
Expected dividend yield | $ | $ 0 |
SHARE CAPITAL AND OPTION RESE_6
SHARE CAPITAL AND OPTION RESERVES - Share options (Details) | 12 Months Ended | |||||
Dec. 31, 2021 Option $ / shares | Dec. 31, 2022 Option $ / shares | Dec. 31, 2021 Option $ / shares | Dec. 31, 2020 Option $ / shares | Dec. 31, 2020 Option $ / shares | Apr. 20, 2020 Option $ / shares | |
Stock options | ||||||
Number of share options | Option | 716,663 | 1,093,333 | 716,663 | 716,663 | 716,663 | |
Exercise price per share | $ 2.37 | $ 1.67 | $ 2.36 | |||
Weighted average exercise price for exercisable options | $ 2.02 | |||||
Stock option plan | ||||||
Stock options | ||||||
Number of share options | Option | 716,663 | 716,663 | 716,663 | 716,663 | 0 | |
Exercise price per share | $ 3 | $ 3 | $ 0 | |||
Expiry Date | Dec. 02, 2030 | |||||
Weighted average exercise price for exercisable options | $ 3 | |||||
Weighted average years to expiry for exercisable options | 8 years 11 months 4 days |
COMMITMENTS - Introductory agen
COMMITMENTS - Introductory agent fee (Details) - BMR Agreement | Dec. 31, 2021 CAD ($) |
Within 15 days of acquisition | |
COMMITMENTS | |
Agent fee payable | $ 5,000 |
6 months after acquisition | |
COMMITMENTS | |
Agent fee payable | 5,000 |
12 months after acquisition | |
COMMITMENTS | |
Agent fee payable | 5,000 |
18 months after acquisition | |
COMMITMENTS | |
Agent fee payable | 5,000 |
24 months after acquisition | |
COMMITMENTS | |
Agent fee payable | 7,500 |
30 months after acquisition | |
COMMITMENTS | |
Agent fee payable | 7,500 |
36 months after acquisition | |
COMMITMENTS | |
Agent fee payable | 10,000 |
42 months after acquisition | |
COMMITMENTS | |
Agent fee payable | 10,000 |
48 months after acquisition | |
COMMITMENTS | |
Agent fee payable | 15,000 |
Every 6 months thereafter | |
COMMITMENTS | |
Agent fee payable | $ 15,000 |
COMMITMENTS - Additional Info_2
COMMITMENTS - Additional Information (Details) - BMR Agreement | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
COMMITMENTS | |
Percent of net smelter returns royalty before payment | 0.50% |
Introductory agent fees and net smelter return royalty payment | $ 1,000,000 |
Percent of reduction in net smelter return royalty | 50% |
Percent of net smelter returns royalty after payment | 0.25% |
RELATED PARTY TRANSACTIONS AN_7
RELATED PARTY TRANSACTIONS AND BALANCES - Compensation (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Management fees | $ 559,591 | $ 12,206 | $ 6,000 | $ 2,000 |
Accounting fees | 9,300 | |||
Share-based payments | 136,148 | 1,807,450 | ||
Total compensation | $ 740,119 | $ 12,206 | $ 15,300 | $ 1,809,450 |
RELATED PARTY TRANSACTIONS AN_8
RELATED PARTY TRANSACTIONS AND BALANCES - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CAD ($) | Dec. 31, 2021 USD ($) | |
RELATED PARTY TRANSACTIONS AND BALANCES | |||||
Administrative expenses incurred on behalf of the company | $ 50,359 | $ 11,266 | |||
Amount payable | $ 7,568 | $ 0 | |||
President | |||||
RELATED PARTY TRANSACTIONS AND BALANCES | |||||
Administrative expenses incurred on behalf of the company | $ 8,652 | $ 8,909 | |||
Amount payable | 0 | 4,929 | |||
Corporate Secretary | |||||
RELATED PARTY TRANSACTIONS AND BALANCES | |||||
Administrative expenses incurred on behalf of the company | 5,470 | 1,519 | |||
Amount payable | $ 0 | $ 0 |
FINANCIAL INSTRUMENT RISK - Fin
FINANCIAL INSTRUMENT RISK - Financial assets measured at fair value on a recurring basis (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CAD ($) |
Financial assets measured at fair value on a recurring basis | |||||
Total assets | $ 14,877,675 | $ 2,592,093 | $ 3,287,709 | $ 2,929,062 | $ 3,730,298 |
Recurring | |||||
Financial assets measured at fair value on a recurring basis | |||||
Total assets | 1,637,232 | 2,847,905 | |||
Recurring | Level 1 | |||||
Financial assets measured at fair value on a recurring basis | |||||
Total assets | 1,633,880 | 2,796,796 | |||
Recurring | Level 3 | |||||
Financial assets measured at fair value on a recurring basis | |||||
Total assets | 4,152 | 51,109 | |||
Recurring | Cash | |||||
Financial assets measured at fair value on a recurring basis | |||||
Total assets | 1,387,670 | 2,421,796 | |||
Recurring | Cash | Level 1 | |||||
Financial assets measured at fair value on a recurring basis | |||||
Total assets | 1,387,670 | 2,421,796 | |||
Recurring | Marketable securities | |||||
Financial assets measured at fair value on a recurring basis | |||||
Total assets | 249,562 | 426,109 | |||
Recurring | Marketable securities | Level 1 | |||||
Financial assets measured at fair value on a recurring basis | |||||
Total assets | 245,410 | 375,000 | |||
Recurring | Marketable securities | Level 3 | |||||
Financial assets measured at fair value on a recurring basis | |||||
Total assets | $ 4,152 | $ 51,109 |
FINANCIAL INSTRUMENT RISK - Cre
FINANCIAL INSTRUMENT RISK - Credit Risk (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) |
FINANCIAL INSTRUMENT RISK | ||||
GST receivable | $ 11,430 | $ 3,133 | ||
Credit risk [member] | ||||
FINANCIAL INSTRUMENT RISK | ||||
Primary exposure to credit risk, cash | $ 12,279,702 | $ 1,094,550 | 1,387,670 | 2,421,796 |
GST receivable | $ 11,430 | $ 3,133 |
FINANCIAL INSTRUMENT RISK - Liq
FINANCIAL INSTRUMENT RISK - Liquidity Risk (Details) - Liquidity Risk | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) |
Maturity analysis for non-derivative financial liabilities | ||
Accounts payable and accrued liabilities, Carrying amount | $ 97,825 | $ 77,048 |
Accounts payable and accrued liabilities, Contractual Cash Flows | 97,825 | 77,048 |
Total, carrying amount | 97,825 | 77,408 |
Total, contractual cash flows | 97,825 | 77,048 |
Within 1 year | ||
Maturity analysis for non-derivative financial liabilities | ||
Accounts payable and accrued liabilities, Carrying amount | 97,825 | 77,048 |
Total, carrying amount | $ 97,825 | $ 77,048 |
FINANCIAL INSTRUMENT RISK - For
FINANCIAL INSTRUMENT RISK - Foreign Exchange Risk (Details) - Foreign Exchange Risk - CAD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
FINANCIAL INSTRUMENT RISK | |||
Percentage of reasonably possible change in risk assumption | 10% | 10% | |
Increase in loss and comprehensive loss due to change in reasonably possible risk assumption | $ 2,535 | $ 66,935 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 12 Months Ended |
Dec. 31, 2021 item | |
SEGMENT INFORMATION | |
Number of business segments | 1 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Reconciliation (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
TAXATION | |||
Net income (loss) before income taxes | $ (502,779) | $ (2,070,249) | |
Income tax recovery based on effective rate of 27% (2020 - 27%) | (135,750) | (551,850) | |
Permanent differences and others | 26,856 | 479,127 | |
Change in deferred tax assets not recognized | $ 108,894 | $ 72,723 | |
Effective tax rate | 27% | 27% | 27% |
INCOME TAXES - Deferred income
INCOME TAXES - Deferred income tax (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) |
Deferred income tax assets not recognized | ||||
Deferred tax assets not recognized | $ 694,982 | $ 141,580 | $ 181,617 | $ 72,723 |
Non-capital tax losses | $ 1,191,205 | $ 375,315 | ||
Temporary differences [member] | ||||
Deferred income tax assets not recognized | ||||
Non-capital tax losses | 475,875 | |||
Non-capital loss carry-forwards | ||||
Deferred income tax assets not recognized | ||||
Deferred tax assets not recognized | 128,486 | 53,142 | ||
Marketable securities and others | ||||
Deferred income tax assets not recognized | ||||
Deferred tax assets not recognized | $ 53,131 | $ 19,581 |