Leases |
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| Leases | NOTE 4 - Leases As of September 30, 2026, the Company has agreements for office and other building space in Lead, South Dakota and Vancouver, British Columbia, Canada, which have been determined to be operating leases. The lease agreements do not contain extension options or variable lease payments. For measurement of the original lease liability and right-of-use (“ROU”) asset, the Company applied a discount rate of 11.66% based on an estimated incremental borrowing rate. The operating lease for one building was renewed in August 2026 for an additional three-year period. Operating lease cost is included in general and administrative and exploration expenses on the consolidated statements of operations. Operating lease ROU assets are included in Other Assets on the condensed consolidated balance sheets. The operating lease ROU asset balance is $0.3 million and $0.2 million as of September 30, 2026 and December 31, 2025, respectively. The weighted average remaining lease term for operating leases as of September 30, 2026 and December 31, 2025 is 2.2 years and 1.1 years, respectively. On June 1, 2026, the Company entered into an agreement for office and building space in Lead, South Dakota, which has been determined to be a finance lease. The lease agreement does not contain an extension option or variable lease payments. The lease contains a purchase option for $1.1 million, reduced by an initial payment and monthly rent credits resulting in a potential net closing payment of approximately $1.0 million on March 31, 2030. For measurement of the original lease liability and finance lease asset, the Company applied a discount rate of 11.66% based on an estimated incremental borrowing rate. As the Company does not have readily observable borrowing rates, management estimated its incremental borrowing rate by considering current market interest rates, recent financing transactions of comparable development-stage mining companies, the Company’s stage of development and credit characteristics, the terms of the underlying leases and other relevant economic factors. Finance lease ROU assets are included in Property and Equipment, net in the condensed consolidated balance sheets. The finance lease ROU asset balance is $1.0 million and $nil as of September 30, 2026 and December 31, 2025, respectively. The remaining lease term for the finance lease as of September 30, 2026 is 3.5 years. As of September 30, 2026, the remaining lease payments under these lease agreements are as follows:
Supplemental non-cash information related to leases includes the following
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