v3.26.3
Fair Value Measurements (Tables)
12 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Summary of Fair Value of Liabilities Measured at Fair Value on Recurring Basis

The following table present the fair value of liabilities measured at fair value on a recurring basis:

 

Balance at June 30, 2026

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Liabilities

 

 

 

 

 

 

 

 

Royalty conversion feature

 

 

 

 

 

8,946,218

 

$

8,946,218

 

Warrant liability

 

 

 

 

 

2,833,905

 

 

2,833,905

 

Total

 

 

 

 

 

11,780,123

 

$

11,780,123

 

 

 

Balance at June 30, 2025

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Liabilities

 

 

 

 

 

 

 

 

Royalty conversion feature

 

 

 

 

 

4,077,929

 

$

4,077,929

 

Total

 

 

 

 

 

4,077,929

 

$

4,077,929

 

Summary of Key Assumptions in Valuing the Royalty Conversion Option Derivative The key assumptions in valuing the royalty conversion option derivative include:

 



June 30, 2026

 

 

June 30, 2025

 

Cumulative present value of royalty stream

$

24,750,334

 

 

$

16,758,545

 

Conversion threshold is set as the value of the Debenture

$

15,000,000

 

 

$

15,000,000

 

Term in years for Debenture maturity

2.49

 

 

3.49

 

Term in years for buy-back option

4.49

 

 

5.49

 

Volatility (A 2.49 year historical volatility of gold and silver, weighted by relative value in the project, is used as the historical volatility for the royalty stream)

 

22.65

%

 

 

15.93

%

Risk-Free Rate (Derived 2.49 year from a term-matched coupon risk-free interest rate derived from the Treasury Constant Maturities yield curve)

 

4.06

%

 

 

3.64

%

Dividend yield1

 

0

%

 

 

0

%

Volatility (A 4.49 year historical volatility of gold and silver, weighted by relative value in the project, is used as the historical volatility for the royalty stream)

 

19.54

%

 

 

 

Risk-Free Rate (Derived 4.49 year from a term-matched coupon risk-free interest rate derived from the Treasury Constant Maturities yield curve)

 

4.10

%

 

 

 

Payment discount rate

 

15.95

%

 

 

 

 

1.
Dividend yield is set to 0% as no value of the royalty is lost given that production is assumed to begin in year 5