The Company is responsible for the reclamation of certain past and future disturbances at its properties. During 2023, a significant upgrade was made to the milling facility and therefore, an ARO was established as of December 31, 2023.

During the year ended December 31, 2025, the Company recorded a change in estimate related to its ARO as a result of completing an updated, comprehensive closure plan. The increase in the ARO was recorded as an increase to mineral property, plant and equipment, with a corresponding increase to the ARO liability. The Company measures AROs using an expected present value technique in accordance with ASC 410‑20 and discounts expected future cash flows using a credit‑adjusted, risk‑free rate. As of December 31, 2025, the discount rate used was 4.92%. The ARO represents estimated undiscounted future cash outflows of approximately $4.7 million, expected to be incurred over the closure and post‑closure periods.

Asset retirement obligation consisted of the following as of June 30, 2026 and December 31, 2025:


	June 30,		December 31,
	2026		2025
Asset retirement obligation at beginning of year	$	2,831,430	$	223,520
Additions to ARO liability		—		2,565,906
Accretion		81,722		42,004
Foreign exchange		55,167		—
Asset retirement obligation at end of year	$	2,968,319	$	2,831,430