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Note 6 - Sale of Homestake Resources
 12 Months Ended
Dec. 31, 2024
Statement Line Items [Line Items]  
Disclosure of disposition of subsidiary [text block]

Note 6: Sale of Homestake Resources

 

On February 25, 2022, the Company completed the sale of Homestake Resources to Dolly Varden for cash proceeds of $5,000 and 76,504,590 common shares of Dolly Varden (note 1). The Company’s resulting interest in Dolly Varden represented approximately 35.3% of the issued and outstanding common shares of Dolly Varden on February 25, 2022, which has been accounted for using the equity method (note 3). The Company recognized a gain of $48,390, net of transaction costs of $589, on the date of disposition, calculated as follows:

 

  

Total

 

Net assets derecognized:

    

Mineral interests

 $16,460 

Reclamation bond

  68 
  $16,528 

Net proceeds:

    

Cash

 $5,000 

Working capital adjustment

  68 

76,504,590 common shares of Dolly Varden

  60,439 

Transaction costs

  (589)
  $64,918 

Net gain on disposition

 $48,390 

 

The fair value of the common shares of Dolly Varden received on date of disposition is based on the market price of the shares at the date of disposition of $0.79 per share.

 

The Company had sufficient non-capital losses at December 31, 2022 to offset the capital gain arising on disposition of Homestake Resources. As such, there was nil tax payable on the sale of Homestake Resources.