v3.25.4
Equipment and Right-of-Use asset
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Equipment and Right-of-Use asset

5. Equipment and Right-of-Use asset

 

Equipment consists of the following:

 

Schedule of Equipment 

       
   December 31,   December 31, 
   2025   2024 
         
Equipment  $2,538,375   $2,468,339 
Less accumulated depreciation   (1,066,259)   (726,358)
Equipment, net  $1,472,116   $1,741,981 

 

The total depreciation expense during the year ended December 31, 2025, was $339,901 (year ended December 31, 2024 - $212,645). During the year ended December 31, 2025, the Company paid a nonrefundable deposit of $1,430,107 to execute a lease-to-own contract with Caterpillar to upgrade the underground equipment fleet. The payment is recorded on the consolidated balance sheets as long-term deposit as the equipment will not be delivered to the Company until 2026.

 

Right-of-use asset consists of the following:

 

       
   December 31,   December 31, 
   2025   2024 
         
Right-of-use asset  $1,022,716   $984,562 
Less accumulated depreciation   (427,515)   (226,437)
Right-of-use asset, net  $595,201   $758,125 

 

The total depreciation expense during the year ended December 31, 2025, was $201,078 (year ended December 31, 2024 - $180,652). The weighted average remaining lease term is 6 months as of December 31, 2025 (7 months as of December 31, 2024). The weighted average discount rate of the lease contracts is 15%. The Company is a party primarily to lease contracts for mining related mobile equipment.