13. FAIR VALUE OF FINANCIAL INSTRUMENTS
ASC 820 - Fair Value Measurement establishes a three-tier fair value hierarchy. The fair value hierarchy’s three tiers are based on the extent to which inputs used in measuring fair value are observable in the market, and are as follows:
| Level 1: | Quoted prices (unadjusted) in active markets for identical assets or liabilities; | |
| Level 2: | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and | |
| Level 3: | One or more significant inputs used in a valuation technique are unobservable in determining fair values of the asset or liability. |
Determination of fair value and the resulting hierarchy requires the use of observable market data whenever available. The classification of an asset or liability in the hierarchy is based upon the lowest level of input that is significant to the measurement of fair value.
The carrying value of cash and cash equivalents, trade payables, accrued liabilities, vehicle financing and mortgage payable approximate their fair value due to their short-term nature or are at market rates. A summary of the carrying value and fair value of other financial instruments were as follows:
| June 30, 2026 | December 31, 2025 | |||||||||||||||||
| Classification | Carrying Value $ | Fair Value $ | Carrying Value $ | Fair Value $ | ||||||||||||||
| DSU liability(1) | Level 1 | 294,987 | 294,987 | 373,392 | 373,392 | |||||||||||||
| NSR option liability(2) | Level 3 | 2,750,000 | 2,750,000 | 2,750,000 | 2,750,000 | |||||||||||||
Notes:
| (1) | For DSU liability, the fair value of the DSUs is measured using the closing price of the Company’s Common Shares at the end of each reporting period. |
| (2) | The fair value of the NSR options is determined using a valuation model that incorporates such factors as discounted cash flow projections, metal price volatility, and risk-free interest rate. As the NSR options are exercisable entirely at the discretion of Cymbria and the underlying projects are in the exploration stage, the fair value of the call and put on the options as at June 30, 2026, and December 31, 2025, is $. The Option Payment of $2,750,000 was recorded as a non-current liability. |
The following represents a summary of the Company’s future debt maturities based on the principal amounts outstanding for vehicle financing and mortgage payable at June 30, 2026:
2026 $ | 2027 $ | 2028 $ | 2029 $ | 2030 $ | Total $ | |||||||||||||||||
| 188,556 | 363,305 | 331,266 | 314,502 | 224,520 | 1,422,149 | |||||||||||||||||
Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three and six months ended June 30, 2026 and 2025
(Expressed in Canadian dollars)