Note
10: Commitments and Contingencies
Payments
Required to Maintain the Whistler Project
The
Company is required to make annual land payments to the Department of Natural Resources of Alaska in the amount of $230,605 in 2026 and
thereafter, to keep the Whistler Project in good standing. Additionally, the Company has an annual labor requirement of $135,200 for
2026 and thereafter, for which a cash-in-lieu payment equal to the value of the annual labor requirement may be made instead.
Future
Commitments
The
Company has obligations pursuant to underlying agreements on the Whistler Project, as follows:
| 1. | 2.75%
net smelter return (“NSR”) over all 377 claims and extending outside the current
claims over an Area of Interest defined by the maximum historical extent of claims held on
the Whistler Project to Osisko Mining (USA) Inc. (“OM”) pursuant to an Amended
and Restated Net Smelter Returns Royalty Deed dated December 16, 2014, granted by Geoinformatics
Alaska Exploration Inc. (as assumed by the Company on August 5, 2015) in favor of MF2 LLC
(as assumed by OM). Gold Royalty U.S. Corp. holds a right to buy down the royalty percentage
from 2.75% to 2.0% upon payment to OM of a one-time payment of $5,000,000. The royalty was
subsequently assigned to Nevada Select Royalty, Inc. (a subsidiary of Gold Royalty Corp.). |
| | | |
| 2. | 2.0%
net proceeds royalty interest over an Area of Interest specified by standard township sub-division
overlying the Whistler Deposit and Raintree West deposit to Sandstorm Gold Ltd. pursuant
to an agreement dated October 1, 1999, between the Company (the ultimate successor-in-interest
to Kent Turner, Jr.) and Sandstorm Gold Ltd. (the ultimate successor-in interest to Cominco
American Incorporated). In October 2025, following the acquisition of Sandstorm Gold Ltd.
by Royal Gold, Inc., the interest was transferred to RG Royalties, a wholly owned subsidiary
of Royal Gold, Inc. |
| | | |
| 3. | 1.0%
NSR over the Whistler Project to Gold Royalty U.S. Corp. pursuant to a Net Smelter Returns
Royalty Agreement dated January 11, 2021, between the Company and Gold Royalty U.S. Corp. |
U.S.
GOLDMINING INC.
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited
– Expressed in U.S. Dollars)
|