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General and Administrative Expenses

12 Months Ended

Dec. 31, 2023

General and Administrative Expenses [Abstract]

9. General and administrative expenses

The following summary key expenses are included in administrative expenses for the year ended:

		For the years ended,
		December 31,			December 31,		December 31,
	Note	2023			2022		2021
		$			$		$
Wages & employee benefits			5,698,761			4,403,080		543,006
Professional fees			3,099,798			6,525,039		6,722,078
Drilling and site costs			-			150,173		225,838
Directors’ fees			591,631			192,298		30,353
Legal expenses			5,121,915			10,278,807		1,234,066
Exploration expenses			59			1,314,483		216,990
Depreciation of property and equipment	13		524,959			129,596		25,527
Depreciation of right of use asset	13		353,851			117,436		-
Loss on disposal of property and equipment	13		-			271,789		-
Amortization of intangible assets	15		163,147			71,095		62,646
Provision for VAT receivable	11		4,617,911			-		-
Share-based expense - Lifezone Holdings shareholder earnout	25		248,464,035			-		-
Share-based expense - Sponsor earnout	25		17,094,750			-		-
SPAC transaction expenses	1		76,857,484			-		-
Share-based payment expense - share options	25		-			-		463,094
Share-based payment expense - restricted stock units	24		-			-		9,525,000
Gain (loss) on foreign exchange			(179,640	)		55,701		66,295

Lifezone incurred costs of $23.2 million associated with the SPAC and PIPE transactions over 2023 and 2022, of which $9.6 million were accrued in 2022, while $13.5 million were incurred in 2023. Lifezone has apportioned $5.7 million as directly attributable to equity issuance fees recognized within shareholder’s equity resulting in a net balance of $7.9 million expensed which is included in Professional and Legal fees above for the year ended December 31, 2023 (2022: $9.6 million).

Other increase in the general and administrative expenses was primarily due to an increase of $1,695,906 in wages and employee benefits on account of an increase in the number to 189 employees as of December 31, 2023 (93: December 31, 2022).

Please see Note 11 for details on the “Provision for VAT receivable”.

Share-based payment expenses of $265,558,785 under the SPAC Transaction have been recognized in accordance with IFRS 2 - Share-based Payment, related to the earnouts with market performance vesting conditions as described in Note 1.

These earnouts relate to shares granted to previous Lifezone Holdings shareholders and Sponsor shareholders. In addition, related to the SPAC Transaction, Lifezone has recognized $76,857,484 as SPAC transaction expenses to account for the excess of fair value of equity in Lifezone issued to participating (non-redeeming) GoGreen shareholders over the fair value of GoGreen’s identifiable net assets acquired classified as a service of a stock exchange listing in accordance with IFRS 2, paragraph 10.7.

Lifezone capitalized drilling, site costs, exploration, study costs and resettlement compensation expenses during year ended December 31, 2023, and 2022 to exploration and evaluation assets following advancement in its exploration and study program as disclosed in detail in Note 16.