Management’s Discussion & Analysis for the three months ended March 31, 2025 and 2024
VIRIDIAN METALS INC.
Management’s Discussion & Analysis for the three months ended March 31, 2025 and 2024
The following management’s discussion and analysis (“MD&A”), dated April 22, 2025, of the financial condition and results of the operations of Viridian Metals Inc. (“Viridian” or the “Company”) and should be read in conjunction with the interim condensed consolidated financial statements and the related notes for the three months ended March 31, 2025, and the audited consolidated financial statements and the related notes for the year ended December 31, 2024 (“the Financial Statements”). This MD&A constitutes management’s review of the factors that affected the Company’s financial and operating performance for the three months ended March 31, 2025 and 2024. This MD&A was written to comply with the requirements of National Instrument 51-102 – Continuous Disclosure Obligations. All dollar amounts are stated in Canadian dollars, unless otherwise noted.
Description of Business
Viridian Metals Inc., was incorporated on February 28, 2022, under the Canada Business Corporations Act and has its principal office in Almonte, Ontario, Canada. The Company is engaged in the evaluation, acquisition and exploration of mineral properties in Canada. The Company plans to ultimately develop the properties, bring them into production, option or lease the properties to third parties, or sell the properties outright. The Company has not determined whether these properties contain mineral reserves that are economically recoverable, and the Company is considered to be in the exploration stage. The head office is located at 3990 Old Almonte Road, Almonte, Ontario, K0A 1A0.
The financial statements and the financial information contained in this MD&A were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee (“IFRIC”). Please refer to Note 3 of the annual audited financial statements as at and for the year ended December 31, 2024, and 2023, for disclosure of the Company’s significant accounting policies.
The presentation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reported period. Such estimates and assumptions affect the carrying value of assets, decisions as to when exploration costs should be capitalized or expensed and estimates for asset retirement obligations and reclamation costs. Other significant estimates made by the Company include factors affecting the valuations of share‐based payments, warrants, and the valuation of tax accounts. Viridian regularly reviews its estimates and assumptions. Actual results could differ from these estimates and these differences could be material.
The board of directors of the Company has reviewed this MD&A and the financial statements for the three months ended March 31, 2025, and 2024, approved these documents prior to their release.
Coco Pool Corp. RTO Transaction
On November 6, 2024, Viridian Metals Corp. and Coco completed the Amalgamation. Following closing of the Amalgamation, Viridian Metals Corp. became a wholly-owned subsidiary of Coco, and Coco will continue the business of Viridian Metals (the “Resulting Issuer”). On completion of the Amalgamation Coco changed its name to Viridian Metals Inc. For accounting purposes, the Amalgamation has been presented as the acquisition of Coco by Viridian Metals Corp. resulting in a reverse takeover (the “RTO”) and the accounting issuance of 2,852,000 common shares, 138,000 Finder warrants, and 285,200 stock options to Coco. As Viridian Metals Corp. was deemed to be the accounting acquirer and the continuing business, Viridian Metals Corp. results of its operations are shown as the comparative period in these Financial Statements. Coco’s results of operations are included from the date of acquisition (November 6, 2024) onwards.
The Company has accounted for the transaction as an asset acquisition under the scope of IFRS 2, Share Based Payments. Consideration consisted entirely of shares of the Company which were measured at the fair value of the Viridian shares issued to existing Viridian shareholders at the fair market value of the Viridian shares at the date of the acquisition. As a result of this asset acquisition, the Company recorded a listing expense of $879,598. This reflects the excess of the estimated fair value of common shares, finder warrants, stock options, and transaction costs less the acquired assets and liabilities of Coco.
Board of Directors and Management of the Company
Lee Bowles, Sebastien Charles, Alan Grujic and Tyrell Sutherland have been appointed as the board of directors of the Company post RTO. Biographies of each of the directors and officers of the Company can be found in the Filing Statement dated October 28, 2024 (the “Filing Statement”) and filed in connection with the Transaction on the Company’s SEDAR+ profile at www.sedarplus.ca.
Management of the Company consists of Tyrell Sutherland (President and Chief Executive Officer), Sabino Di Paola (Chief Financial Officer) and Coulter Wright (Corporate Secretary).
Acquisition of Mineral Properties
The Company’s strategy is grass roots project generation intended to be followed by project level exploration ideally with a partner which funds exploration costs. All properties which are under consideration for acquisition must initially pass through the Company’s evaluation criteria. Properties which are considered worthy are then acquired, provided a reasonable agreement can be reached with the owner or the property is available for staking or acquisition upon application. In cases where the project does not develop to the stage that management perceives it to be likely to attract such financing or if subsequent work by the Company indicates that further in-house work will not yield favorable results, the property is abandoned.
Property Agreements and Exploration
The Company is engaged in the evaluation, acquisition and exploration of mineral properties in Canada. The Company plans to ultimately develop the properties, bring them into production, option or lease the properties to third parties, or sell the properties outright. The Company would ideally use an “earn-in” arrangement with partners, whereby the partner funds all the exploration expenditures in return for a percentage ownership in the project.
Technical Disclosure
Disclosure of a scientific or technical nature regarding the Company’s properties was prepared by or under the supervision of and approved by Tyrell Sutherland, P. Geo., (PGO #2459), (the “Qualified Person”) a qualified person within the meaning of National Instrument 43‐101 ‐ Standards of Disclosure for Mineral Projects ("NI 43‐101") and Viridian’s Chief Financial Officer. The Qualified Person has verified the data disclosed. Data verification involved checking of information for past drill holes, trench surveying, logging, sampling, and assaying as well as a review of information in the exploration computer database.
Kraken property
Property Description and Location The Kraken Project is in west-central Labrador, approximately 90 kilometres north of Churchill Falls, on the northeast shore of the Smallwood Reservoir. The project consists of three contiguous mineral licenses encompassing covering 182.75 km² across NTS map sheets 13L/04, 13L/05, and 13L/12.
Geological Setting and Mineralization The project covers approximately 45 km of the southeastern margin of the Michikamau Intrusion—the oldest body in the Nain Plutonic Suite, a mid-Proterozoic series of large mafic–ultramafic intrusions extending from interior Labrador to the coast. This margin is characterized by ultramafic sequences in contact with sulfidic paragneiss of the Petscapiskau Group.
Primary magmatic sulfide mineralization has been identified at three surface showings along the intrusion’s margin and under glacial cover 4km along strike from the Main Zone Showing. The most advanced target, the Main Zone, is marked by a ~1 km² gossan hosting disseminated to massive sulfides along the contact zone. Historical grab samples have returned up to 1.32% Ni and 0.89% Cu, while Viridian’s drilling has intersected broader intercepts including 21.1 m @ 0.27% Ni, 0.26% Cu, and 0.04% Co.
An airborne electromagnetic (EM) survey identified 169 conductors across the property, totaling 64 km of strike length. Four conductors have been tested by drilling to date.
The Kraken property is being explored as a variant of the magmatic Ni-Cu-Co sulfide deposit model with numerous similarities to Voisey’s Bay Deposit 250 km to the NW in equivalent rocks.
2025 Planned Work Program – Kraken
(All figures in CAD unless noted otherwise ) $ Geologist and exploration management 169,500 Drilling and assaying 105,000 Helicopter and travel 116,250 logistics 69,500
Subtotal 460,250
Contingency (15%) 69,038
Total Phase I Budget 529,288
Active Projects and Exploration Highlights
Conductor Modeling and Intrusion Targeting In late 2024, Viridian received a reinterpretation of its 2022 EM survey. The update identified 169 conductors totaling over 64 km of combined strike. To date, only four conductors have been drilltested. In Q1 2025, Viridian completed 3D modeling of ten high-priority conductors. Many are interpreted to lie 40–70 m below surface—beyond the effective detection range of traditional surface work.
This work highlighted the need for a lithogeophysical model of the Michikamau intrusion to better define the geometry of its lobes and understand the polyphase nature of its emplacement in relation to sulfide prospectivity.
Main Zone Drilling and Results In 2024, Viridian completed 314 m of man-portable drilling in 22 holes across the Main Zone. The rig’s max depth of ~24 m limited testing, with some holes ending in mineralization. Results released in late 2024 and February 2025 confirmed higher-than-modeled grades and thicker-than-expected intervals. Highlights include:
- 0.65 m @ 4.15% Cu, 0.24% Ni, 0.03% Co
- 21.1 m @ 0.26% Cu, 0.27% Ni, 0.04% Co
These results support Viridian’s thesis that copper-rich ISS mineralization is present but underexplored. The final five holes of the 2024 program ended in mineralization. Viridian is evaluating higher-capacity man-portable drill options (a depth of ~30m per hole) for the 2025 program to support further delineation at the Main Zone and testing of additional targets.
Sedna property
Property Description and Location The Sedna Property comprises 45 mineral licenses near Happy Valley–Goose Bay, Labrador, covering approximately 2,600 km² over ~110 km of strike from Orma Lake Road in the west to Snegamook Lake in the east.
Geology Sedna spans much of the Mesoproterozoic Seal Lake Basin. The basin hosts the Seal Lake Group— clastic sedimentary rocks interbedded with basalt flows and intruded by gabbroic sills. Its southern margin is defined by a reactivated unconformity with older felsic volcanic units of the Letitia Lake Group. Historical mapping identifies over 70 copper ± silver occurrences across the basin.
Mineralization The Sedna Property includes 71 copper-silver occurrences catalogued by the Newfoundland and Labrador Geological Survey. Of these, 69 are classified as “indications” and two as “showings,” reflecting limited historical work rather than lack of prospectivity.
Copper is typically found near shears or faults at contacts between basalts, diabase intrusions, and shale. In upper stratigraphy, mineralization is interpreted as remobilized during the Grenvillian Orogeny into fractures and shear zones. The lower stratigraphy remains poorly understood due to limited work.
2025 Planned Work Program – Sedna
(All figures in CAD unless noted otherwise ) $ Geologist and exploration management 86,850 Basin modeling and mineral system analysis (1) 252,390 Helicopter and travel 119,250 logistics 42,930
Subtotal 501,420
Contingency (15%) 75,213
Total Phase I Budget 576,633
(1) iCRAG will be responsible for cash contributuions of €80,000 ($126,195).
BHP Xplor program Viridian was selected as a member of BHP’s 2025 Xplor program, an accelerator designed to support high-potential junior explorers in de-risking early-stage opportunities. Under the program, Viridian is eligible to receive up to USD$780,000 in non-dilutive funding, contingent upon execution of a basinwide, systematic exploration program targeting large-scale mineral systems.
As part of this program Viridian has committed to spending $431,000 on exploration across the basin to answer several questions about basin architecture and the nature and scale of mineral systems active here.
As at the date of this MD&A, the Company reached the first 3 milestones and received US680,000 in milestone payments from BHP.
Strategic partnerships To support this work required under the BHP Xplor program, Viridian has partnered with Dr. Simon Jones, Senior Research Fellow at University College Dublin and a key member of the Irish Centre for Research in Applied Geosciences (iCRAG).
In April 2025, Viridian entered into a partnership agreement with University College Dublin (“UCD”). Through this collaboration, Viridian’s is required to make direct contributions to iCRAG of €80,000, which are matched by public research funding. These contributions will enable Viridian to obtain advanced 3D and 4D basin modeling and mineral systems analysis with a goal to further refine the exploration potential across the Seal Lake Basin.
iCRAG is a world-class geoscience research centre composed of over 150 researchers across eight academic institutions. It is co-funded by Science Foundation Ireland, Geological Survey Ireland, and multiple industry partners. Key member institutions include:
- University College Dublin
- Trinity College Dublin
- Dublin Institute for Advanced Studies
- University College Cork
- Maynooth University
- National University of Ireland Galway
- Technological University Dublin
- Dublin City University
- University of Limerick
- Teagasc
Recent Accounting Pronouncements
Certain new standards, interpretations, amendments and improvements to existing standards were issued by the IASB or IFRIC that are mandatory for accounting periods beginning on January 1, 2024 or later. This includes IAS1 and IAS8. These new standards and changes did not have any material impact on the Company’s financial statements. Updates that are not applicable or are not consequential to the Company have been excluded.
Selected Annual Financial Information
Selected Annual Information
Year ended 2024 2023 2022 (1)
$ $ $
Net (loss) (2,309,197) (1,162,633) (823,238)
Net (loss) per share
- Basic (0.05) (0.03) (0.02)
- Diluted (0.05) (0.03) (0.02)
Total assets 980,628 534,439 422,427 Long-Term Liabilities - - -
(1) From the date of incorporation February 28, 2022 to December 31, 2022
Selected Quarterly Financial Information
The following table is a summary of selected financial information for the Company for the eight most recently completed financial quarters. It has been derived from the unaudited condensed interim financial statements of the Company. The information has been prepared by management in accordance with IFRS and is expressed in Canadian dollars.
For the three-month period ended
March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 $ $ $ $ Net (loss) (105,389) (1,500,524) (237,177) (455,923) Net (loss) per share
- Basic - (0.05) (0.01) (0.01)
- Diluted - (0.05) (0.01) (0.01)
Total assets 757,294 980,628 943,514 925,335
For the three-month period ended
March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 $ $ $ $ Net (loss) (115,573) (97,926) (822,835) (220,617) Net (loss) per share
- Basic (0.00) (0.00) (0.02) (0.01)
- Diluted (0.00) (0.00) (0.02) (0.01)
Total assets 424,529 534,439 566,577 1,458,578
Viridian does not own any interests in producing mineral properties or have any other significant revenue generating activities. The Company’s only source of revenue is from interest earned on cash. The Company spends money on evaluating, acquiring, and exploring mineral properties and on general and administrative costs associated with maintaining a public company.
Results of Operations
During the three months ended March 31, 2025, the Company had a net loss of $105,389 (March 31, 2024 - $115,573). The following table outlines the significant increases (decreases) experienced by the Company in the three months ended March 31, 2025, compared with the three months ended March 31, 2024.
Three months ended
| March 31, 2025 | March 31, 2024 | Variance | |
|---|---|---|---|
| $ | $ | $ | |
| Exploration expenditures (recovery) | (117,313) | 41,124 | (158,437) |
| Consulting fees | 91,350 | 19,500 | 71,850 |
| Regulatory fees | 41,336 | - | 41,336 |
| Promotion | 20,903 | 5,858 | 15,045 |
Exploration expenditures decrease by $158,437 compared to the prior period. The decrease is largely due to the partner contributions by BHP under the Xplor program. During Q1 2025, the Company received $755,457 of partner contributions (Q1 2024 - $nil) which were a result of Viridian meeting the first 2 milestones under the program. In Q1 2025, the Company also staked additional mineral claims surrounding its Sedna property. The claim staking costs in Q1 2025 were $672,815 (Q1 2024 - $nil). During the three months ended March 31, 2025 the Company incurred exploration expenditure, gross of partner contributions, government grants and claim acquisition costs of $46,791 compared to $41,124 for the three months ended March 31, 2024.
Consulting fees increased by $71,800 compared to the prior period. The increase is due to the fact that the Chief Financial Officer was billing $1,500 monthly and Chief Executive Officer of the Company were not taking monthly compensation in Q1 2024. In the three months ended March 31, 2025, the compensation of the Chief Financial Officer was increased to $5,000 per month and the Chief Executive Officer started billing $6,000 per month. In Q4 2024, the Company also engaged a Corporate Secretary and a communication strategist which bill $1,500 and $2,500 per month, respectively. Starting in Q1 2025, the Company engaged a company to provide corporate advisory services at a fee of $7,500 per month.
Regulatory fees increased by $41,336 compared to the prior period. The increase is due to one time CSE listing expenses of $31,936 incurred in Q1 2025, when the Company voluntarily delisted from the TSXV and listed on the CSE. In Q1 2024, the Company was private and did not incur any regulatory fees.
Promotion fees increased by $15,045 compared to the prior period. The increase costs incurred by the Company for PDAC promotion as well as additional marketing. In Q1 2024, the Company was private and did not attend PDAC.
Financing
There were no financings completed during the three months ended March 31, 2025.
Stock Option grants
There were no stock options granted during the three months ended March 31, 2025.
Liquidity and Capital Resources
The Company’s activities consist of the exploration and evaluation of its various properties, a process that is ongoing, and is dependent on many factors, some of which are beyond managements control. The Company does not generate any cash flows from operations and does not currently have any income other than interest income. The Company relies on equity financings to fund its working capital requirements and planned exploration, development and permitting activities. Management maintains a policy of reviewing working capital requirements on a monthly basis and is mindful of any property and administrative commitments.
At March 31, 2024, the Company had a deficit of $4,400,457 (December 31, 2024 - $4,295,068) and working capital of $594,245 (December 31, 2024 - $699,634). The Company as at March 31, 2025, had cash balances of $464,982 (December 31, 2024 – $116,389) and accounts payable and current liabilities of $162,049 (December 31, 2024 - $280,994).
During the year ended December 31, 2024, the Company raised $1,000,000 through flow-through placements. The Company is required to fulfil its commitment within the stipulated deadline of December 31, 2025. As of March 31, 2025, the Company has incurred $353,175 of this commitment leaving $646,825 to be spent by December 31, 2025.
Based on the Company’s financial position as at March 31, 2025, the available funds are not considered adequate to meet requirements for the estimated operations, exploration and development expenditures in the coming twelvemonth period. These requirements may be adversely impacted by an absence of normal available financing due to the continued uncertainty in the markets for mineral exploration companies operating in emerging countries. To address its financing requirements, the Company will seek financing through and not limited to the sale of non-strategic assets, debt financing, strategic alliances, equity financing, optioning its mineral properties and a marketing program to increase the trading volume demand of the Company shares to increase the exercise of outstanding warrants. However, there is no assurance that such financing will be available.
On January 4, 2025, the Company entered into a participation agreement with BHP for its 2025 Xplor program. The program allows for the Company to receive US$780,000 of non-dilutive funding should the Company certain milestones be met. As of the date of this MD&A the Company has successfully meet 3 of the 4 milestones and as such has received US$680,000 from the program.
The Company has incurred one-time fees in Q1 2025 in relation to the voluntary delisted from the TSXV and the listing on the CSE. The Company has a non-exploration normalized cash burn of approximately $31,925.
Based on the Company’s planned 2025 exploration programs on Sedna and Kraken, the Company anticipates being eligible for a minimum $100,000 JEAP grant this year.
Outstanding Share Data
Viridian’s authorized capital stock consists of an unlimited number of common shares without par value. As at the date of this MD&A, the Company had 49,608,938 common shares outstanding. The Company has 2,815,800 stock options and 9,228,938 warrants outstanding.
Financial Instrument Risk
The Company’s financial assets and financial liabilities are exposed to various risk factors that may affect the fair value presentation or the amount ultimately received or paid on settlement of its assets and liabilities. A summary of the major financial instrument risks and the Company’s approach to the management of these risks are highlighted below.
Credit risk Credit risk refers to the potential loss arising from any failure by counterparties to fulfill their obligations, as and when they fall due. It is inherent to the business as potential losses may arise due to the failure of its counterparties to fulfill their obligations on maturity periods or due to adverse market conditions. The Company’s financial assets exposed to credit risk are primarily composed of cash, and receivables. Cash has been invested with reputable financial institutions, from which management believes the risk of loss to be remote.
The Company’s high-grade receivables are with the Newfoundland and Labrador government as well as the government of Canada.
Neither past due As at March 31, 2025 nor impaired Past due or High grade Standard Individually Total grade impaired
| Cash and receivables: | $ | $ | $ | $ |
|---|---|---|---|---|
| Cash | 464,982 | – | – | 464,982 |
| Advances and receivables | 272,701 | – | – | 272,701 |
| 737,683 | – | – | 737,683 |
Liquidity risk The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at March 31, 2025, the Company had a cash balance of $464,982 (December 31, 2024 - $116,389) to settle current liabilities of $81,791 (December 31, 2024 - $204,942). The Company's accounts payable and accrued liabilities generally have contractual maturities of less than 30 days and are subject to normal trade terms.
Interest rate risk The Company has cash balances and no interest-bearing debt. The Company's current policy is to invest excess cash in investment-grade short-term deposit certificates issued by banking institutions. The Company periodically monitors the investments it makes and is satisfied with the credit ratings of its banks. The Company is sensitive to changes in the interest rates through interest income earned on its cash balance.
Price risk Price risk with respect to commodity prices is remote since the Company is not a producing entity. The Company is exposed to price risk with respect to its marketable securities. Unfavourable market conditions could result in disposition of the investments at less than favourable prices.
Commodity price risk The ability of the Company to develop its properties and the future profitability of the Company is directly related to fluctuations in the market price of certain minerals.
Foreign exchange risk The Company’s foreign exchange risk arises primarily with respect to the U.S. dollar. As part of the BHP Xplor program a significant portion of the Company’s cash is denominated in U.S. dollars. Fluctuations in the exchange rates between these currencies and the Canadian dollar could have a material effect on the Company’s business, financial condition, and results of operations. The Company does not engage in any hedging activity.
There have been no changes in the Company’s objectives and policies for managing the abovementioned risks and there has been no significant change in the Company’s exposure to each risk during the three months ended March 31, 2025. As at March 31, 2025, a 10% change in U.S. dollar against Canadian dollar would result in a $46,000 (March 31, 2024 - $nil) decrease or increase in the Company's net comprehensive loss.
Management’s Evaluation of Disclosure Controls
Management is responsible for the design and effectiveness of disclosure controls and procedures to provide reasonable assurance that material information related to the Company is made known to the Company’s certifying officers. The Company’s Chief Executive Officer and Chief Financial Officer have each evaluated the effectiveness of the Company’s disclosure controls and procedures as at March 31, 2025 and December 31, 2024 and have concluded that these controls and procedures are effective. Internal Control over Financial Reporting: Management is responsible for the design of internal controls over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements in accordance with accounting principles generally accepted in Canada. Based on a review of its control procedures at the end of the period covered by this MD&A, management believes its internal controls and procedures are appropriately designed as at March 31, 2025, and December 31, 2024.
Related Party Transactions
In accordance with IAS 24, key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including any directors (executive and non-executive) of the Company. Current key management of Viridian includes the President and Chief Executive Officer, and Chief Financial Officer.
Three months ended March 2025 2024
$ $ Corporations controlled by an officer of the Company:
| Exploration and evaluation | 26,250 | 1,400 |
| Chief Financial Officer services | 17,850 | 4,500 |
| Chief Executive Officer services | 24,000 | - |
| Corporate Secretary services | 4,500 | - |
| Market consulting services | 15,000 | 15,000 |
| Total | 87,600 | 20,900 |
Accounts payable and accrued liabilities as at March 31, 2025, include amounts owing to directors and officers in the amount of $33,316 (December 31, 2024 - $37,092). These amounts are unsecured, noninterest bearing and have no fixed terms of repayment.
These transactions with related parties were measured at the exchange amount which is the amount of consideration established and agreed to by the related parties.
Investor Relations Activities
Management of the Company is currently performing the investor relations services.
Off-Balance Sheet Arrangements
At March 31, 2025, and December 31, 2024, the Company had no off-balance sheet arrangements such as guarantee contracts, contingent interest in assets transferred to an entity, derivative instruments obligations or any obligations that trigger financing, liquidity, market or credit risk to the Company.
Proposed Transactions
In the normal course of business, the Company evaluates property acquisition and sale transactions and, in some cases, makes proposals to acquire or sell such properties. These proposals, which are usually subject to Board and sometimes regulatory and shareholder approvals, may involve future payments, share issuances and property work commitments. These future obligations are usually contingent in nature and generally the Company is only required to incur the obligation if it wishes to continue with the transaction.
Commitments and contingencies
As at March 31, 2025, the Company had the following commitments:
Carrying Contractual amount cash flows $ $
Accounts payable and accrued liabilities 81,791 81,791
Total 81,791 81,791
The accounts payable and accrued liabilities are due within one year.
Management contracts The Company is party to certain management contracts containing minimum commitments of approximately $196,500 upon the occurrence of a change of control. As a triggering event has not taken place, the contingent payments have not been reflected in these financial statements.
Flow through expenditure commitment The Company is partially financed through the issuance of flow-through shares and, according to tax rules regarding this type of financing, the Company is engaged in realizing mining exploration work.
These tax rules also set deadlines for carrying out the exploration work which must be performed no later than the earlier of the following dates:
- Two years following the flow-through placements;
- One year after the Company has renounced the tax deductions relating to the exploration work.
However, there is no guarantee that the Company's exploration expenses will qualify as Canadian exploration expenses even if the Company is committed to taking all the necessary measures in this regard. Refusal of certain expenses by the tax authorities would have a negative tax impact for investors.
During the year ended December 31, 2024, the Company raised $1,000,000 through flow-through placements. The Company is required to fulfil its commitment within the stipulated deadline of December 31, 2025. As of March 31, 2025, the Company has incurred $353,175 of this commitment leaving $646,825 to be spent by December 31, 2025.
The Company has provided an indemnification to subscribers of flow through shares in an amount equal to the income tax that would be payable by subscribers in the event, and as a consequence, of the Company not incurring and renouncing qualifying Canadian Exploration Expenditures (“CEE”) as required under the subscription agreement. Companies must pay Part XII.6 tax, when it utilizes the