Income taxes (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax [Abstract] |
|
| Schedule of reconciliation of tax expense |
The provision for income tax differs from the amount that would have resulted by applying the combined Canadian statutory income tax rates of approximately 26.5% (2024 – 26.5% and 2023 – 26.5%):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
|
December 31,
2023 |
|
Loss before income tax |
|
$ |
51,807,669 |
|
|
$ |
46,220,711 |
|
|
$ |
13,046,362 |
|
Canadian Statutory Tax Rate |
|
|
26.5 |
% |
|
|
26.5 |
% |
|
|
26.5 |
% |
|
|
|
|
|
|
|
|
|
|
Expected tax recovery |
|
$ |
(13,729,032 |
) |
|
$ |
(12,248,488 |
) |
|
$ |
(3,457,286 |
) |
Share-based compensation |
|
|
11,190,551 |
|
|
|
9,469,630 |
|
|
|
1,246,362 |
|
Foreign tax rate deferential |
|
|
1,810 |
|
|
|
1,283 |
|
|
|
935 |
|
Change in tax benefit not recognized |
|
|
2,888,122 |
|
|
|
2,965,317 |
|
|
|
2,370,827 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
351,451 |
|
|
$ |
187,742 |
|
|
$ |
160,838 |
|
|
| Schedule of detailed information about income tax expense |
The components of tax expense included in the determination of the loss for the years are as follows:
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|
|
|
|
|
|
|
|
|
|
|
|
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|
December 31,
2025 |
|
|
December 31,
2024 |
|
|
December 31,
2023 |
|
Current tax expense |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Deferred tax expense |
|
|
351,451 |
|
|
|
187,742 |
|
|
|
160,838 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
351,451 |
|
|
$ |
187,742 |
|
|
$ |
160,838 |
|
|
| Schedule of deferred income tax liability |
The following table reflects the change in deferred income tax liability as at December 31, 2025, 2024 and 2023:
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|
|
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|
|
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|
|
|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
|
December 31,
2023 |
|
Balance, beginning of year |
|
$ |
(1,880,387 |
) |
|
$ |
(2,196,087 |
) |
|
$ |
(1,883,661 |
) |
Deferred income tax expense |
|
|
(351,451 |
) |
|
|
(187,742 |
) |
|
|
(160,838 |
) |
Foreign currency translation |
|
|
(241,100 |
) |
|
|
503,442 |
|
|
|
(151,588 |
) |
|
|
|
|
|
|
|
|
|
|
Balance, end of year |
|
$ |
(2,472,938 |
) |
|
$ |
(1,880,387 |
) |
|
$ |
(2,196,087 |
) |
|
| Schedule of temporary difference, unused tax losses and unused tax credits |
The following table summarizes the components of deferred income tax:
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|
|
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|
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|
|
|
December 31,
2025 |
|
|
December 31,
2024 |
|
|
December 31,
2023 |
|
Exploration and evaluation assets |
|
$ |
(3,534,538 |
) |
|
$ |
(2,687,855 |
) |
|
$ |
(3,139,298 |
) |
Loss carryforwards |
|
|
1,061,600 |
|
|
|
807,468 |
|
|
|
943,211 |
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities, net |
|
$ |
(2,472,938 |
) |
|
$ |
(1,880,387 |
) |
|
$ |
(2,196,087 |
) |
As at December 31, 2025, deferred tax assets for the carry forward of certain unused tax losses and unused tax credits have not been recognized as it is not probable that taxable income will be available against which the unused tax losses and credits can be utilized. Deductible temporary differences for which no deferred tax assets have been recognized are attributable to the following:
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|
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|
Canada |
|
December 31,
2025 |
|
|
December 31,
2024 |
|
Non-capital losses |
|
$ |
100,171,000 |
|
|
$ |
100,660,000 |
|
Deductible temporary differences |
|
$ |
4,574,448 |
|
|
$ |
2,520,440 |
|
|
|
|
|
|
|
|
Brazil |
|
December 31,
2024 |
|
|
December 31,
2023 |
|
Non-capital losses |
|
$ |
— |
|
|
$ |
— |
|
|
| Schedule of tax losses carried forward expiration |
Brazilian tax losses carried forward can only be applied, in any year, in an amount up to 30% of taxable income for that year. Tax losses in Canada can be carried forward to reduce taxable income in future years. The losses are scheduled to expire as follows:
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|
|
|
|
Year of Expiry |
|
Amount |
|
2045 |
|
$ |
11,185,000 |
|
2044 |
|
|
11,674,000 |
|
2043 |
|
|
8,985,000 |
|
2042 |
|
|
8,645,000 |
|
2041 |
|
|
4,268,000 |
|
2040 |
|
|
3,355,000 |
|
2039 |
|
|
4,681,000 |
|
2038 |
|
|
3,843,000 |
|
2037 |
|
|
4,804,000 |
|
2036 |
|
|
6,207,000 |
|
2035 |
|
|
8,182,000 |
|
2034 |
|
|
8,041,000 |
|
2033 |
|
|
4,762,000 |
|
2032 |
|
|
2,950,000 |
|
2031 |
|
|
3,127,000 |
|
2030 |
|
|
2,891,000 |
|
2029 |
|
|
2,571,000 |
|
|
|
$ |
100,171,000 |
|
|