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COMMITMENTS AND CONTINGENCIES | 12 Months Ended
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Dec. 31, 2021
COMMITMENTS AND CONTINGENCIES |
COMMITMENTS AND CONTINGENCIES | NOTE 17 COMMITMENTS AND CONTINGENCIES Commitments The following are minimum commitments of the Company as at December 31, 2021, and related payments due over the following five years: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Payments due by period
​ | ​ | 2022 | ​ | 2023 | ​ | 2024 | ​ | 2025 | ​ | Thereafter | ​ | Total
Mining and surface rights | ​ | $ | 492 | ​ | $ | 488 | ​ | $ | 470 | ​ | $ | 443 | ​ | $ | — | $ | 1,893
Exploration | ​ | ​ | 8,116 | ​ | ​ | 15,080 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | 23,196
Reclamation costs(1) | ​ | ​ | 6,358 | ​ | ​ | 5,873 | ​ | ​ | 525 | ​ | ​ | 1,186 | ​ | ​ | 29,215 | ​ | 43,157
Long-term debt | ​ | ​ | 4,875 | ​ | ​ | 14,712 | ​ | ​ | 32,710 | ​ | ​ | 10,027 | ​ | ​ | — | ​ | 62,324
Lease obligations | ​ | ​ | 2,949 | ​ | ​ | 1,058 | ​ | ​ | 441 | ​ | ​ | — | ​ | ​ | — | ​ | 4,448
Total | ​ | $ | 22,791 | ​ | $ | 37,210 | ​ | $ | 34,146 | ​ | $ | 11,656 | ​ | $ | 29,215 | $ | 135,018
(1) | Amounts presented represent the undiscounted uninflated future payments.
Reclamation Bonds As part of its ongoing business and operations, the Company is required to provide bonding for its environmental reclamation obligations of $25.3 million in Nevada pertaining primarily to the Tonkin and the Gold Bar properties and $12.4 million (C$15.6 million) in Canada with respect to the Black Fox Complex. In addition, under Canadian regulations, the Company was required to deposit approximately $0.1 million with respect to its Lexam properties in Timmins, which is recorded as non-current restricted cash (Note 18). Surety Bonds As at December 31, 2021, the Company had a surety facility in place to cover all its bonding obligations, which include $25.3 million of bonding in Nevada and $12.4 million (C$15.6 million) of bonding in Canada. The terms of the facility carry an average annual financing fee of 2.3% and require a deposit of 10%. The surety bonds are available for draw-down by the beneficiary in the event the Company does not perform its reclamation obligations. If the specific reclamation requirements are met, the beneficiary of the surety bonds will release the instrument to the issuing entity. The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements, through existing or alternative means, as they arise. As at December 31, 2021, the Company recorded $3.6 million in restricted cash as a deposit against the surety facility (Note 18). Streaming Agreement As part of the acquisition of the Fox Complex in 2017, the Company assumed a gold purchase agreement (streaming contract) related to production, if any, from certain claims. Under the streaming contract, the Company is obligated to sell 8% of gold production from the Black Fox mine and 6.3% from the adjoining Pike River property (Black Fox Extension) to Sandstorm Gold Ltd. at the lesser of market price or $561 per ounce (with inflation adjustments of up to 2% per year) until 2090. The Company records revenue on these shipments based on the contract price at the time of delivery to the customer. During the year ended December 31, 2021, the Company recorded revenue of $1.3 million (2020 – $1.2 million) related to the gold stream sales. Flow-through Eligible Expenses In January 2021, the Company close a flow-through share issuance to fund the development at the Froome deposit. As of December 31, 2021, the Company incurred the full required spend of $12.7 million in CDE. In 2020, the Company completed two flow-through share issuances. The total proceeds of $18.3 million will be used to incur qualifying CEE in the Timmins region of Ontario by December 31, 2022. As of December 31, 2021, the Company has incurred $12.7 million of the required CEE spend (December 31, 2020 - $1.9 million). Other potential contingencies The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment, and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations. The Company and its predecessors have transferred their interest in several mining properties to third parties throughout its history. The Company could remain potentially liable for environmental enforcement actions related to its prior ownership of such properties. However, the Company has no reasonable belief that any violation of relevant environmental laws or regulations has occurred regarding these transferred properties.

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