v3.26.3
Reclamation and Environmental Obligation
 12 Months Ended
Jun. 30, 2026
Environmental Remediation Obligations [Abstract]  
Reclamation and Environmental Obligation

Note 10. Reclamation and Environmental Obligation:

Reclamation and environmental costs are based principally on legal requirements. Management estimates costs associated with reclamation of mineral properties and properties under mine closure. On an ongoing basis the Company evaluates its estimates and assumptions; however, actual amounts could differ from those based on estimates and assumptions.

The Company has posted several cash bonds as financial security to satisfy reclamation requirements for its BLM mining claims. The balance of posted cash reclamation bonds at June 30, 2026 is $508,781 (June 30, 2025 - $546,176).

Paramount is responsible for managing the reclamation activities from the previous mine operations at the Sleeper Gold Mine as directed by the BLM and the Nevada State Department of Environmental Protection (“NDEP”). Paramount has estimated the undiscounted reclamation costs for existing disturbances and monitoring at the Sleeper Gold Project required by the BLM and NDEP to be $5,742,047 at June 30, 2026. These costs are expected to be incurred between the calendar years 2026 and 2060. The sum of expected costs by year are discounted using the Company’s credit adjusted risk free interest rate from the time it expects to pay the retirement to the time it incurs the obligation. The asset retirement obligation for the Sleeper Gold Project recorded on the balance sheet is equal to the present value of the estimated reclamation costs as required by both the BLM and NDEP.

The following variables were used in the calculation for the fiscal years ending June 30, 2026 and 2025:

 

 

 

Year Ended
June 30, 2026

 

 

Year Ended June 30, 2025

 

Weighted-average credit adjusted risk free rate

 

 

9.90

%

 

 

9.90

%

Weighted-average inflation rate

 

 

2.53

%

 

 

2.53

%

 

Changes to the Company’s asset retirement obligation for the Sleeper Gold Mine for the years ended June 30, 2026 and 2025 are as follows:

 

 

Year Ended
June 30, 2026

 

 

Year Ended June 30, 2025

 

Balance at beginning of period

 

$

2,293,765

 

 

$

2,270,288

 

Accretion expense

 

 

227,647

 

 

 

225,413

 

Additions and change in estimates

 

 

(30,196

)

 

 

(81,936

)

Settlements

 

 

(120,000

)

 

 

(120,000

)

Balance at end of period

 

$

2,371,216

 

 

$

2,293,765

 

 

During the years ended June 30, 2026 and 2025, the changes in estimates were a decrease of $30,196 and $81,936, respectively. Also during the years ended June 30, 2026 and 2025, settlements for the reclamation and environmental obligation totaled $120,000 and $120,000, respectively. For settlements that have no benefit to future mining operations, the corresponding amount recorded in mineral properties are written off (Note 9). The balance of the reclamation and environmental obligation of $2,371,216 (2025 - $2,293,765) is comprised of a current portion of $120,000 (2025 - $120,000) and a non-current portion of $2,251,216 (2025 - $2,173,765).