| INCOME TAXES |
The income and mining tax recoveries shown in the consolidated statements of loss and comprehensive loss differs from the amounts obtained by applying statutory rates to the loss before provision for income taxes due to the following: | | | | | | | | | | Year ended December 31 | | | | 2025 | | 2024 | | Loss before income taxes | | $ | (47,967,190) | | $ | (50,268,354) | | Statutory tax rate | | | 27.00 | % | | 27.00 | % | Income tax recovery at statutory tax rate | | | (12,964,913) | | | (13,572,000) | | Flow-through renunciations | | | 1,334,205 | | | 12,285,000 | | Other non-deductible expenses or non-taxable credits | | | 871,480 | | | (3,033,000) | | Mining tax | | | (326,348) | | | — | | Current year tax benefit not recognized | | | 10,691,006 | | | 4,320,000 | | Income and mining tax recoveries | | $ | (394,570) | | $ | — | | | | | | | | | | Comprising: | | | | | | | | Current tax expense | | $ | — | | $ | — | | Deferred tax recovery | | | (394,570) | | | — | | | | $ | (394,570) | | $ | — | |
23. | INCOME TAXES (continued) |
The significant components of the Company’s deferred income tax assets and deferred income tax liabilities at December 31, 2025 and 2024 were as follows: | | | | | | | | | 2025 | | 2024 | Net deferred income tax liability relating to: | | | | | | | Reserves | | $ | (518,760) | | $ | — | Exploration and evaluation assets | | | (52,882,550) | | | — | Property, plant and equipment | | | (14,408,328) | | | — | Non-capital losses | | | 7,671,273 | | | — | Investments | | | 4,136 | | | — | Share issue costs | | | 237,027 | | | — | Reclamation and closure cost provision | | | 2,658,300 | | | — | Mining tax | | | (26,408,398) | | | — | Net deferred income tax assets (liabilities) | | $ | (83,647,300) | | $ | — | | | | | | | | Classified and presented as: | | | | | | | Deferred income tax assets | | $ | — | | $ | — | Deferred income tax liabilities | | | (83,647,300) | | | — | | | $ | (83,647,300) | | $ | — |
The movements in the Company’s net deferred income tax liabilities during the years ended December 31, 2025 and 2024 were as follows: | | | | | | | | | 2025 | | 2024 | Balance, beginning of year | | $ | — | | $ | — | Recognized on Maritime Acquisition | | | (84,041,870) | | | — | Recognized in net income | | | 394,570 | | | — | Balance, end of year | | $ | (83,647,300) | | $ | — |
The Company’s deductible temporary differences, unused tax losses and unused tax credits at December 31, 2025 and 2024 for which deferred income tax assets have not been recognized were as follows: | | | | | | | | | 2025 | | 2024 | Exploration and evaluation assets | | $ | 54,392,000 | | $ | 25,619,000 | Property, plant and equipment | | | 3,676,000 | | | 2,954,000 | Non-capital losses | | | 55,088,000 | | | 38,411,000 | Investments | | | — | | | 11,620,000 | Share issue costs | | | 5,885,000 | | | 5,186,000 | Reclamation and closure cost provision | | | 2,713,000 | | | 2,426,000 | Capital losses | | | 24,831,000 | | | 18,630,000 | | | $ | 146,585,000 | | $ | 104,846,000 |
23.INCOME TAXES (continued) As at December 31, 2025, the Company has Canadian non-capital loss carryforwards of approximately $80,673,000 that may be available for tax purposes. The Company’s non-capital losses expire as follows: | | | | Expiry Date | | Non-Capital Loss Amount | 2028 | | $ | 71,000 | 2029 | | | 41,000 | 2030 | | | 95,000 | 2031 | | | 313,000 | 2032 | | | 408,000 | 2033 | | | 562,000 | 2034 | | | 421,000 | 2035 | | | 480,000 | 2036 | | | 1,180,000 | 2037 | | | 1,323,000 | 2038 | | | 2,432,000 | 2039 | | | 2,412,000 | 2040 | | | 2,562,000 | 2041 | | | 10,101,000 | 2042 | | | 12,651,000 | 2043 | | | 13,228,000 | 2044 | | | 16,039,000 | 2045 | | | 16,354,000 | | | $ | 80,673,000 |
As at December 31, 2025, the Company also has capital loss carryforwards of approximately $24,830,000 (2024 - $18,630,000) that may be available for tax purposes. These losses can be carried forward indefinitely.
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