| Taxation |
| a) | Provision for Income Taxes |
The reconciliation of the combined Canadian Federal
and Provincial statutory income tax rate of 26.5% (2024: 26.5%) to the effective tax rate is as follows:
| | |
2025 $ | | |
2024 $ | |
| (Loss) before income taxes | |
| 63,543,458 | | |
| (28,532,195 | ) |
| Expected income tax recovery based on statutory rate | |
| 16,839,000 | | |
| (7,561,000 | ) |
| Adjustment to expected income tax recovery: | |
| | | |
| | |
| Change in foreign exchange rates | |
| | | |
| | |
| Permanent differences and other | |
| 320,000 | | |
| (11,727,000 | ) |
| Provision to return adjustment | |
| (1,110,000 | ) | |
| (95,000 | ) |
| Share based compensation | |
| 3,501,000 | | |
| 5,101,000 | |
| Other | |
| | | |
| | |
| Change in unrecorded deferred tax asset | |
| (19,550,000 | ) | |
| 14,282,000 | |
| Current tax provision (recovery) | |
| - | | |
| - | |
| Deferred income tax provision (recovery) | |
| - | | |
| - | |
The Company expensed $1,137,731 of taxes paid related to prior periods
in the year ended December 31, 2025. Deferred taxes are a result of temporary differences that arise due to the differences between the income tax values and the carrying
amount of assets and liabilities.
| | |
2025 $ | | |
2024
$ | |
| Non-capital loss carry-forwards | |
| 23,777,000 | | |
| 27,054,000 | |
| Undepreciated capital cost (UCC) | |
| 24,000 | | |
| 24,000 | |
| Reserves | |
| 262,814 | | |
| 299,000 | |
| Share issue costs | |
| 2,000 | | |
| 74,000 | |
| Exploration and evaluation assets | |
| 5,112,000 | | |
| 5,112,000 | |
| Investments | |
| 8,040,907 | | |
| - | |
| Intangible assets | |
| - | | |
| 2,576,000 | |
| Capital losses carried forward | |
| 17,045,000 | | |
| 17,045,000 | |
| Total | |
| 54,263,721 | | |
| 52,184,000 | |
The
Company has approximately $52,378,000 of non-capital loss carry forwards in Canada which may be used to reduce the taxable income of
future years. These losses expire from 2026 to 2045.
|