Note 11: Investments in associates

(a) Summarized financial information of the Company's investments in associates:

The carrying amounts of the Company's investments in associates as at December 31, 2023, were as follows:

		Dolly Varden			UMS			Total
Carrying amount at December 31, 2021	$	-		$	-		$	-
Acquisition of equity investment		60,439			151			60,590
Disposal (note 1)		(12,280	)		-			(12,280	)
Company's share of net loss of associates		(5,856	)		(24	)		(5,880	)
Carrying amount at December 31, 2022	$	42,303		$	127		$	42,430
Company's share of net loss of associates		(6,177	)		(5	)		(6,182	)
Carrying amount at December 31, 2023	$	36,126		$	122		$	36,248

The quoted fair market value of the Company's interest in Dolly Varden at December 31, 2023 was $51,769 (December 31, 2022 - $53,554) based on the closing share price on that date.

On October 13, 2022, the Company completed the sale of 17,000,000 common shares of Dolly Varden, comprising 22.2% of the Company's equity interest in Dolly Varden acquired as part of the disposition of Homestake Resources (note 1), for total gross proceeds of $6,800. As at September 30, 2022, the sale was considered highly probable; therefore, the partial investment in associate represented by the 17,000,000 common shares was classified as an asset held for sale. The Company remeasured the carrying amount of the shares held for sale as the lower of cost and FVLCD and recognized an impairment expense of $5,506 in respect of the disposal. A reconciliation of the impairment expense is as follows:

Carrying amount, investment in Dolly Varden	$	55,265
Equity interest transferred to held for sale		22.2%
Carrying amount transferred to asset held for sale		12,280
Less: FVLCD		(6,774	)
Impairment expense recognized	$	5,506

For the year ended December 31, 2022, the Company's equity share of net loss of the Company's associates on a 100% basis were as follows:

Year ended December 31, 2022		Dolly Varden			UMS			Total
Cost recoveries	$	-		$	(4,412	)	$	(4,412	)
Exploration and evaluation		16,936			1,642			18,578
Marketing		1,057			312			1,369
Share-based compensation		1,786			2,433			4,219
Administrative and other		(508	)		121			(387	)
Net loss of associate, 100%		19,271			96			19,367
Average equity interest for the year		30.4%			25%
Company's share of net loss of associates	$	5,856		$	24		$	5,880

The net loss for the associates in 2022 includes the periods February 25, 2022 to December 31, 2022 for Dolly Varden and April 1, 2022 to December 31, 2022 for UMS as these are the periods they were considered to be equity investees.

For the year ended December 31, 2023, the Company's equity share of net loss of the Company's associates on a 100% basis were as follows:

Year ended December 31, 2023		Dolly Varden			UMS			Total
Cost recoveries	$	-		$	(5,517	)	$	(5,517	)
Exploration and evaluation		24,806			1,907			26,713
Marketing		1,409			464			1,873
Share-based compensation		1,971			-			1,971
Administrative and other		(1,536	)		3,166			1,630
Net loss of associate, 100%		26,650			20			26,670
Average equity interest for the period		23.18%			25%
Company's share of net loss of associates	$	6,177		$	5		$	6,182

The Company's equity share of net assets of associates at December 31, 2022, is as follows:

		Dolly Varden			UMS
Current assets	$	28,914		$	879
Non-current assets		155,198			2,750
Current liabilities		(4,100	)		(1,654	)
Non-current liabilities		-			(1,467	)
Net assets, 100%		180,012			508
Company's equity share of net assets of associate	$	42,303		$	127

The Company's equity share of net assets of associates at December 31, 2023, is as follows:

		Dolly Varden			UMS
Current assets	$	11,468		$	844
Non-current assets		153,296			2,468
Current liabilities		(804	)		(1,484	)
Non-current liabilities		-			(1,340	)
Net assets, 100%		163,960			488
Company's equity share of net assets of associate	$	36,126		$	122

(b) Services rendered and balances with UMS

		Years ended December 31
		2023		2022		2021
Exploration and evaluation costs	$	872	$	590	$	215
General and administration		714		841		384
Total transactions for the year	$	1,586	$	1,431	$	599

The outstanding balance owing at December 31, 2023 was $103 (December 31, 2022 - $240) which is included in accounts payable.

As part of the UMS arrangement, the Company is contractually obliged to pay certain rental expenses in respect of a ten-year office lease entered into by UMS on July 1, 2021. As at December 31, 2023, the Company expects to incur approximately $381 in respect of its share of future rental expense of UMS.

The Company issues share options to certain UMS employees, including key management personnel of the Company (note 16). The Company recognized a share-based compensation expense of $317 for the year ended December 31, 2023 in respect of share options issued to UMS employees (December 31, 2022 - $483, December 31, 2021 - $453) which is included within employee benefits and exploration and evaluation costs.