v3.26.1
Investment in Joint Venture
 6 Months Ended
Dec. 31, 2025
Notes and other explanatory information [abstract]  
Investment in Joint Venture

 

9.Investment in Joint Venture

 

On March 12, 2025, Frontier announced that it has entered into a 50/50 joint venture (the “Joint Venture”) with Global Uranium and Enrichment Limited (“GUE”), to acquire 100% of the Pine Ridge Uranium Project (“Pine Ridge”) in the Powder River Basin in Wyoming, United States. 

 

The Company’s interest in the Joint Venture (“Powder River Basin LLC” or the “Buyer”) is accounted for using the equity method in the consolidated financial statements. Summarized financial information of the joint venture are set out below:

 

   December 31, 2025   June 30, 2025 
    $    $ 
Current Assets   292,144    1,154,723 
Non-current assets   35,771,486    32,115,558 
Current liabilities   (10,339,806)   (10,657,035)
Non-current liabilities   (10,297,153)   (10,232,250)
Net Assets   15,426,671    12,380,996 

 

The summarized statement of profit and loss of Powder River Basin LLC for the six months ended December 31, 2025 and 2024 is set out below:

   December 31, 2025   December 31, 2024 
    $    $ 
Administrative expenses   117,853    — 
Amortization expenses   40,483    — 
Interest expenses   7,384    — 
Loss for the period   (165,720)   — 
Company's share of loss for the period   (82,860)   — 

 

The carrying value of the investment in the Joint Venture is as follows:

 

 

  

$

 
Balance, June 30, 2025   16,505,997 
Cash contributions to JV   1,502,819 
Share of loss in Powder River Basin LLC   (82,860)
Balance, December 31, 2025   17,925,956 

 

Contingent Liabilities and Commitments:

 

The Buyer will purchase Pine Ridge from Stakeholder Energy LLC (“Seller”) upon payment to the Seller of $US22,500,000 cash, to be paid in three equal installments of US$7,500,000, payable as follows: 

 

i.US$7,500,000 to be paid at closing (“Closing”) of the Acquisition contemplated by the Purchase and Sale Agreement (“Acquisition Agreement”) (“First Instalment”);

ii.US$7,500,000 to be paid on or before one-year from the date of Closing (“Second Instalment”); and

iii.US$7,500,000 to be paid on or before two years from the date of Closing (“Third Instalment”).

 

Further:

 

i.The Buyer shall pay the Seller a production royalty based on an applicable royalty percentage (which will be calculated by a net smelter returns variable between 3.5% and 6%, dependent on U3O8 realized price) from uranium, vanadium and related minerals produced and sold or deemed sold by Buyer from any additional property or property interests acquired by the Buyer, or its affiliates or permitted assigns, within twenty (20) years after the effective date of March 11, 2025.

ii.The Buyer shall expend a minimum of US$10,000,000 in exploration and development costs by the three-year anniversary of the Closing.

 

The Company is responsible for the 50% payment of the consideration. Deferred liabilities (current) have been recognised for its portion (US$3.75m) which is payable within 12 months and a further deferred liabilities (non-current) has been recognised for its portion (US$3.75m) which is payable within 24 months.