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FAIR VALUE OF FINANCIAL INSTRUMENTS
 9 Months Ended
Sep. 30, 2025
Investments, All Other Investments [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

13. FAIR VALUE OF FINANCIAL INSTRUMENTS

 

ASC 820 - Fair Value Measurement establishes a three-tier fair value hierarchy. The fair value hierarchy’s three tiers are based on the extent to which inputs used in measuring fair value are observable in the market, and are as follows:

 

  Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
     
  Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
     
  Level 3: One or more significant inputs used in a valuation technique are unobservable in determining fair values of the asset or liability.

 

Determination of fair value and the resulting hierarchy requires the use of observable market data whenever available. The classification of an asset or liability in the hierarchy is based upon the lowest level of input that is significant to the measurement of fair value.

 

The carrying value of cash and cash equivalents, trade payables and accrued liabilities approximate their fair value due to their short-term nature and therefore have been excluded from the table below. A summary of the carrying value and fair value of other financial instruments were as follows:

 

      September 30, 2025   December 31, 2024 
   Classification 

Carrying Value

$

  

Fair Value

$

  

Carrying Value

$

  

Fair Value

$

 
DSU liability  Level 1   677,426    677,426    941,664    941,664 
Vehicle financing  Level 2   283,510    283,510    246,137    246,137 
Mortgage payable  Level 2   1,413,144    1,413,144    -    - 
Term loan  Level 3   -    -    18,983,212    20,862,478 
NSR option liability  Level 2   2,750,000    2,750,000    2,750,000    2,750,000 

 

DSU liability – the fair value of the DSUs is measured using the closing price of the Company’s Common Shares at the end of each reporting period.

 

Vehicle financing and mortgage payable – the fair values approximate carrying values as the interest rates are comparable to current market rates.

 

Term loan – the term loan was carried at amortized cost. The fair value measurement of the term loan was based on an income approach.

 

NSR option liability – The fair value of the NSR options is determined using a valuation model that incorporates such factors as discounted cash flow projections, metal price volatility, and risk-free interest rate. As the NSR options are exercisable entirely at the discretion of Cymbria and the underlying projects are in the exploration stage, the fair value of the call and put on the options as at September 30, 2025, and December 31, 2024, is $nil.

 

The following represents a summary of the Company’s future debt maturities based on the principal amounts outstanding at September 30, 2025:

 

2025

$

  

2026

$

  

2027

$

  

2028

$

  

2029

$

  

Thereafter

$

  

Total

$

 
 122,348    376,919    341,166    319,279    313,288    223,654    1,696,654 

 

 

 

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three and nine months ended September 30, 2025 and 2024

(Expressed in Canadian dollars)