During the year ended December 31, 2024, the Company entered into agreements to lease, for a term of six years, 15 rural properties consisting of a total area of approximately 4.2 square miles, which primarily will be used for the sites of dry stacked tailings piles. Each of these lease agreements also provides the Company with a right of first refusal to purchase the applicable leased property in the event of a sale of such property. The Company recognized a right-of-use asset and a lease liability of $778,479, in aggregate, on inception of the leases. During the year ended December 31, 2025, the Company purchased one of the rural properties and recorded a disposal of the related leased asset and the acquisition of land included in property, plant and equipment. See Note 9.

Lease liabilities are measured at the present value of the lease payments that are not paid at the statement of financial position date. Lease payments are apportioned between interest expenses and a reduction of the lease liability using the Company’s incremental borrowing rate of 12.75% to achieve a constant rate of interest on the remaining balances of the liabilities. For the year ended December 31, 2025, the Company recognized $83,862 (year ended December 31, 2024 - $55,795) in interest expense related to its lease liabilities, capitalized to exploration and evaluation assets.