(11) Leases

As of the reporting date, the Company maintains two categories of lease arrangements: 

The accounting treatment depends on the nature and purpose of the lease, as described below.

Operating Leases 

The Company has entered into short-term, low-value lease arrangements for shared office and miscellaneous space. These arrangements qualify for the short-term lease exemption under ASC 842 and are not recorded on the balance sheet. Lease payments are recognized as expense over the lease term.

As of the reporting date, the Company does not maintain any finance leases or long-term operating leases that require recognition of right-of-use (“ROU”) assets or lease liabilities under ASC 842.

Mineral Leases 

The Company holds certain mineral lease agreements through its wholly owned subsidiaries that provide rights to explore and potentially develop mineral properties.

Annual lease payments, minimum annual guarantee payments, and related insurance costs are recognized as expense as incurred.

Costs directly attributable to evaluating or advancing a specific mineral property, such as engineering studies, surveys, and other site-specific technical work, are capitalized as part of the related mineral asset in accordance with ASC 930 and ASC 360.

As of the reporting date, no right-of-use assets or lease liabilities have been recognized under ASC 842 with respect to mineral leases, as these arrangements represent mineral property interests accounted for under the extractive activities model rather than operating or financing leases.