Exploration and Evaluation Assets | 6. Exploration and Evaluation Assets Exploration and evaluation assets deferred to the statements of financial position at March 31, 2023 and 2022 are as follows: March 31, Additions Recovery Write-off March 31, Abitibi Lithium $ 1,767,000 $ - $ - $ - $ 1,767,000 Augustus Lithium 335,000 258,290 - - 593,290 Canadian Lithium 176,250 52,631 - - 228,881 Electron Lithium 981,250 200,000 (530,845 ) - 650,405 Falcon Lake 50,000 107,500 (157,500 ) - - Gaspésie Peninsula - 288,500 - (288,500 ) - Jubilee Lithium - 20,000 - - 20,000 Kokanee Creek 932,125 - - - 932,125 McNeely 820,000 - - - 820,000 North Spirit - 442,105 - - 442,105 Red Lake 792,750 - - (792,750 ) - Rose West - 884,000 - - 884,000 Senay Lithium - 900,000 - - 900,000 Titan Gold 150,500 28,000 - - 178,500 Trix Lithium - 75,000 - - 75,000 $ 6,004,875 $ 3,256,026 $ (688,345 ) $ (1,081,250 ) $ 7,491,306 March 31, March 31, 2021 Additions Recovery Write-off 2022 Abitibi Lithium $ - $ 1,767,000 $ - $ - $ 1,767,000 Augustus Lithium 112,500 222,500 - - 335,000 Bald Eagle - 203,500 - (203,500 ) - Canadian Lithium 80,000 96,250 - - 176,250 Electron Lithium - 981,250 - - 981,250 Falcon Lake - 50,000 - - 50,000 Kokanee Creek 163,375 768,750 - - 932,125 McNeely - 820,000 - - 820,000 Phyllis Cobalt 201,750 - - (201,750 ) (i) $ - Red Lake - 792,750 - - 792,750 Scramble Mine 66,000 - - (66,000 ) - Shaw Gold 130,000 - - (130,000 ) - Titan Gold 132,500 18,000 - - 150,500 $ 886,125 $ 5,720,000 $ - $ (601,250 ) $ 6,004,875 (i) Included in the write-off of the Phyllis Cobalt property is $121,000 of previously accrued acquisition costs. (a) Abitibi Lithium Property On March 12, 2021, the Company entered into a purchase agreement to acquire a 100% interest in the Abitibi Lithium property (the “Abitibi Agreement”). The Abitibi Lithium property is comprised of 241 mineral claims covering approximately 13,000 hectares located in the Abitibi area of western Quebec. Under the terms of the Abitibi Agreement, the Company acquired a 100% interest in the Abitibi Lithium property by issuing 1,078,947 common shares of the Company and by paying $250,000 on April 20, 2021. The Abitibi Lithium Property is subject to a 3% NSR royalty, which the Company will have the option to reduce the NSR by 1.0% to 2.0% by paying $1,000,000. (b) Augustus Lithium Property On January 18, 2021, the Company entered into an option agreement to acquire a 100% interest in the Augustus Lithium property (the “Augustus Agreement”). The Augustus Lithium property is comprised of 21 mineral claims covering approximately 900 hectares located in the Abitibi area of western Quebec. On October 29, 2022, the Company entered into amended option agreement allowing the Company to accelerate its option to acquire a 100% interest in the Augustus Lithium property. As consideration for the amendment, the Company issued an additional 350,000 common shares. As of November 7, 2022, the Company completed the required option payments, common share issuances and exploration expenditures to acquire 100% interest of the Augustus Lithium property. Due Dates Option payments Issuance of common shares Minimum Cumulative On signing (paid and issued) 35,000 131,579 Nil Nil January 18, 2022 40,000 131,579 50,000 50,000 October 29, 2022 (paid, issued and completed) 105,000 613,158 500,000 550,000 The Augustus Lithium Property is subject to a 2% NSR royalty. The Company will have the option to reduce the NSR by 1.0% to 1.0% by paying $1,000,000. (c) Bald Eagle Silver Property The Company acquired a 100% interest in the Bald Eagle Silver property issuing 144,737 common shares on April 20, 2021. Bald Eagle is subject to a 2.0% Net Smelter Return (“NSR”) royalty of which the Company will have the option to reduce the NSR by 1.0% to 1.0% by paying $500,000. The Bald Eagle property is located in the Alberni Mining Division of British Columbia and consists of 3 mining claims covering 1,000 hectares. During the fiscal year ended March 31, 2022, the Bald Eagle claims were allowed to lapse and as a result the Company has written-off all deferred costs incurred to date as it works to re-stake the claims. (d) Canadian Lithium Property On February 3, 2021, the Company entered into an option agreement to acquire a 100% interest in the Canadian Lithium property (the “Canadian Lithium Agreement”). The Canadian Lithium property is comprised of 12 mineral claims covering approximately 700 hectares located in the Landrienne Township area of Quebec. On February 3, 2023, the Company had completed the following option payments and shares issuances to acquire a 100% interest of the Canadian Lithium Property. Due Dates Option payments Issuance of FE Battery On signing (paid and issued) 15,000 85,526 February 3, 2022 20,000 65,790 February 3, 2023 25,000 78,947 The Canadian Lithium Property is subject to a 2% NSR royalty. The Company will have the option to reduce the NSR by 1.0% to 1.0% by paying $1,000,000. (e) Electron Lithium Property On March 2, 2022, the Company entered into a purchase agreement to acquire a 100% interest in the Electron Lithium property (the “Electron Agreement”). The Electron Lithium property is comprised of 438 mineral claims covering approximately 30,000 hectares of prospective land around the Augustus Lithium Property in western Quebec. On November 8, 2022, the Company had completed the following option payments and share issuances to acquire a 100% interest in the Electron Lithium property. Due Dates Option payments Issuance of FE Battery On signing (paid and issued) 100,000 986,842 September 2, 2022 100,000 Nil March 2, 2023 100,000 Nil The Electron Lithium property is subject to a 3% Gross Metal Royalty (“GMR”), which the Company will have the option to reduce the GMR by 1.0% to 2.0% by paying $1,000,000. On November 14, 2022, the Company entered into a joint venture agreement (the “Infini Joint Venture Agreement”) with Infini Resources Pty Ltd. (“Infini Resources”) whereby Infini Resources may earn a 100% interest in 255 of the 438 mineral claims comprising the Electron Lithium Property. Pursuant to the Infini Joint Venture Agreement, Infini Resources made a non-refundable payment of AUD$50,000 (CAD$44,088) and has elected to earn an initial 50% interest by making an initial cash payment of AUD$550,000 (CAD$486,837). Upon exercising the option, a joint venture will also be formed between FE Battery and Infini Resources to further advance the project. Infini Resources has the option to acquire an additional 25% by making a further AUD$150,000 payment and issuing shares of Infini Resources in the value of AUD$150,000 within 18 months of earning its initial 50% interest. Infini Resources may then acquire the remaining 25% interest, for a 100% beneficial interest by making a further payment AUD$300,000 and issuing shares of Infini Resources in the value of AUD$300,000 within 12 months of earning its 75% interest. The Infini Joint Venture Agreement may be terminated in certain circumstances, including by FE Battery if certain milestones are not met in accordance with agreement. (f) Falcon Lake Property On January 3, 2022, the Company entered into an option agreement to acquire a 100% interest in the Falcon Lake property (the “Falcon Lake Agreement”). The Falcon Lake property is comprised of 48 mineral claims covering approximately 1,000 hectares located in the Thunder Bay Mining Division, Ontario. On September 30, 2022, the Company entered into an amended option agreement which amended certain cash payments, share issuances and exploration expenditures due dates and requirements of the Option Agreement. On October 21, 2022, the Company completed the following amended option payments and share issuances to acquire a 100% interest in the Falcon Lake property: Due Dates Option payments Issuance of FE Battery On signing (paid and issued) 15,000 26,316 October 21, 2022 70,000 131,579 On January 27, 2023, the Company executed a joint venture agreement (the “Battery Age Minerals Joint Venture Agreement”) with Battery Age Minerals Limited (“Battery Age Minerals”) whereby Battery Age Minerals may earn a 100% interest in the Falcon Lake Property. Pursuant to the Battery Age Minerals Joint Venture Agreement, Battery Age Minerals made a non-refundable payment of AUD$50,000 (CAD$45,359) and elected to earn a 65% interest by completing the initial option payment consisting of a cash payment of AUD$100,000 (CAD$93,999) and issuing the Company 1,375,000 of Battery Age Mineral shares valued at $513,975. Battery Age Minerals earned a further 25% interest, for an aggregate 90% interest, by issuing a further 750,000 shares of Battery Age Minerals valued at $290,295 and by making a cash payment of AUD$50,000 (CAD$46,175). Battery Age Minerals may acquire the remaining 10% interest, for a 100% beneficial interest by making a further payment equal to the lower of the price determined by independent valuation or AUD$2 million. Upon Battery Age Minerals earning a 90% interest, a joint venture will be deemed to have been formed between FE Battery and Battery Age Minerals to further advance the project. The option agreement may be terminated in certain circumstances, including by FE Battery if certain milestones are not met in accordance with agreement. (g) Gaspesie Peninsula Property On December 15, 2022, the Company entered into an option agreement to acquire a 100% interest in the Gaspesie Peninsula Property. The property consists of 55 mining claims covering approximately 3,100 hectares in Quebec. Under the terms of the Gaspesie Peninsula Agreement, the Company has the option to acquire a 100% interest in the property by completing the following option payments, common share issuances and exploration expenditures: Due Dates Option Issuance of common shares Minimum ($) Cumulative On signing (paid and issued) 17,500 713,158 Nil Nil March 31, 2023 17,500 100,000 Nil Nil December 15, 2023 40,000 200,000 100,000 100,000 December 15, 2024 50,000 400,000 400,000 500,000 December 15, 2025 60,000 500,000 2,000,000 2,500,000 The Gaspesie Peninsula property is subject to a 2% NSR royalty, which the Company will have the option to reduce the NSR by 1.0% to 1.0% by paying $1,000,000. As at March 31, 2023, the Company chose to write-off all deferred costs to date as the Company had not fulfilled the terms of the agreement. (h) Jubilee Lithium Property On December 1, 2022, the Company entered into an option agreement to acquire a 100% interest in the Jubilee Lithium Property. The property consists of 10 mining claims covering approximately 3,300 hectares area located in Ear Falls, Ontario. Under the terms of the Jubilee Lithium Agreement, the Company has the option to acquire a 100% interest in the property by completing the following option payments: Due Dates Option payments December 1, 2024 20,000 December 1, 2025 30,000 The Jubilee Lithium property is subject to a 2.0% NSR royalty. (i) Kokanee Creek and Independence Gold Properties On March 17, 2020, the Company entered in an option agreement to acquire a 100% interest in the Kokanee Creek and Independence Gold Properties (the “Properties”). The Properties are located in British Columbia and consist of 5 claims covering 2,690 hectares. On February 28, 2021 and again on August 13, 2021, the Company entered into amended option agreements which amended the due dates for certain cash payments, share issuances and exploration expenditure requirements of the option agreement, as noted below. As of March 31, 2022, under the terms of the Properties amended option agreement, the Company had acquired a 100% interest in the Kokanee Creek Property by completing the following option payments, common share issuances and exploration expenditures: Due Dates Option payments ($) Issuance of common shares On signing (paid) 10,000 Nil December 31, 2021 35,500 657,895 March 31, 2022 (issued) Nil 730,263 The Properties are subject to a 2.0% NSR royalty of which the Company will have the option to reduce the NSR by 1.0% by paying $1,000,000. During the year ended March 31, 2021, the Company announced it would not be pursuing any further exploration work on the Independence Gold property and wrote-off all deferred costs incurred to date. (j) McNeely Lithium Property Pursuant to the McNeely Lithium Property purchase agreement entered on June 7, 2021, the Company acquired a 100% interest in the McNeely Lithium Property, by issuing 526,316 common shares and paying $250,000. The McNeely Lithium Property is located in Quebec and consists of 66 claims covering approximately 2,400 hectares. The McNeely Lithium Property is subject to a 3.0% GMR. Certain of the claims are subject to a pre-existing 1.0% NSR. The Company will have the option to purchase the NSR by paying $200,000 to the NSR holder. (k) North Spirit Property On June 13, 2022, the Company entered into an option agreement to acquire a 100% interest in the North Spirit Property. The property consists of 124 mining claims covering approximately 2,500 hectares area in two claim blocks on crown land in northwestern Ontario and is located about 175 kilometres to the north of Red Lake, Ontario. On October 26, 2022, the Company entered into an amended option agreement which amended the certain cash payments, share issuances and exploration requirements of the option agreement. Under the terms of the amended North Spirit option agreement, the Company acquired a 100% interest in the North Spirit Property by completing the share issuance of 1,105,262 common shares. The North Spirit property has a 1% GMR payable to the Optionor. (l) Phyllis Cobalt Property On January 29, 2018, the Company entered into an option agreement to acquire a 100% interest in certain mineral claims (the “Phyllis Property”) covering 1,750 hectares located in the Kenora Mining District in northwestern Ontario, Canada. On January 29, 2019, March 15, 2019 and again on December 30, 2019, the Company entered into amended option agreements (the “Phyllis Amendment Agreement”) which amended the due dates for certain cash payments, share issuances and exploration expenditure requirements of the Phyllis Cobalt Agreement, as noted below. Under the terms of the Phyllis Amendment Agreement, the Company has the option to acquire a 100% interest in the Phyllis Property by completing the following option payments, common share issuances and exploration expenditures: Due Dates Option payments Issuance of FE Battery Minimum expenditures Cumulative On signing (paid and issued) 20,000 26,316 Nil Nil September 1, 2020 35,000 39,474 (issued) 75,000 (completed) 75,000 (completed) December 31, 2020 35,000 39,474 25,000 (completed) 100,000 (completed) June 1, 2021 50,000 52,632 25,000 (completed) 125,000 (completed) Under the Phyllis Amendment Agreement, the Phyllis Property is subject to a 3% NSR royalty upon commencement of commercial production. The Company will have the option to reduce the NSR by 1.0% to 2.0% by paying $1,000,000. During the year ended March 31, 2022, the Company wrote-off all deferred costs incurred to date as the Company continues negotiations for an amended agreement. (m) Red Lake Property On September 14, 2020, the Company entered into an option agreement to acquire a 100% interest in the Red Lake Property. The Red Lake property is located in the Red Lake Mining District of Northwestern Ontario and consists of 94 mining cell claims covering 1,880 hectares in the Ball and Todd townships. On February 28, 2021, and again on August 13, 2021, the Company entered into amended option agreements to which the Company could acquire a 100% interest in the property by issuing 730,263 shares. As of March 31, 2022, the Company had acquired 100% interest in the Red Lake property having issued 730,263 shares. The Red Lake property is subject to a 2.5% NSR royalty, with the Company having the option to reduce the NSR by 1% to 1.5% by paying $1,000,000. In December 2022, the Company wrote-off all deferred costs to date as the claims were allowed to lapse. (n) Rose West Lithium Property On November 25, 2022, the Company entered into an option agreement to acquire a 100% interest in the Rose West Property. The Rose West Lithium property is located in the James Bay region of northern Quebec and consists of 32 mining claims covering approximately 1,700 hectares within townships. On December 9, 2022, the Company entered into amended option agreement to which the Company could acquire a 100% interest in the property by issuing 1,300,000 shares and granted the Company a 1% GMR. Subsequent to March 31, 2023, the Company issued the required shares to acquire a 100% interest in the Rose West Lithium property (Note 14). The Rose West Lithium property has a 1% GMR payable to the optionor upon the commencement of commercial production. (o) Scramble Mine Gold Property On June 2, 2020, the Company entered into an option agreement to acquire a 100% interest in certain mineral claims (the “Scramble Mine Gold Property”) located in the Kenora Mining District in northwestern Ontario, Canada. Under the terms of the Scramble Mine Option Agreement, the Company has the option to acquire a 100% interest in the Scramble Mine Gold Property by completing the following option payments, common share issuances and exploration expenditures: Due Dates Option payments Issuance of FE Battery Minimum Cumulative On signing (issued) Nil 105,263 Nil Nil September 1, 2020 (completed) Nil Nil 30,000 30,000 June 2, 2021 Nil 78,947 40,000 70,000 June 2, 2022 Nil 78,947 80,000 150,000 June 2, 2023 100,000 Nil 100,000 250,000 The Scramble Mine Gold Property is subject to a 3.0% NSR royalty. The Company will have the option to reduce the NSR by 1.0% to 2.0% by paying $500,000. During the year ended March 31, 2022, the Company wrote-off all deferred costs incurred to date, as the Company negotiates an amended agreement. (p) Senay Lithium Property On March 4, 2023, the Company entered into an option agreement to acquire a 100% interest in the Senay Lithium Property (“Senay Lithium”). The Senay Lithium Project consists of 59 mining claims covering approximately 3,100 hectares in northern Quebec. Under the terms of the Senay Lithium Agreement, the Company has the option to acquire a 100% interest in the property by completing the following option payments: Due Dates Issuance of FE Battery March 4, 2023 (accrued) 1,500,000 March 4, 2024 1,500,000 The Senay Lithium Property is subject to a 1.0% GMR, of which the Company may repurchase by paying $1,000,000 for each 0.5%. See Note 14. (p) Shaw Gold Property On September 18, 2020, the Company entered into an option agreement with Gravel Ridge Resources Ltd. to acquire a 100% interest in the Shaw Gold Property (“Shaw Gold”). Shaw Gold is located in Timmins Area Ontario, Canada and is comprised of 18 claims covering approximately 693 hectares in the Shaw, Eldorado and Whitney Townships near Timmins, Ontario. During the year ended March 31, 2022, the Company decided it would not be pursuing any further exploration work on the Shaw Gold property and as a result has written-off all deferred costs incurred to date. (q) Titan Gold Property On October 2, 2020, the Company entered into an option agreement to acquire a 100% interest in the Titan Gold Property (“Titan Gold”). Titan Gold is located in the Abitibi area of Western Quebec, Canada and is comprised of 80 mining claims covering approximately 4,400 hectares. Under the terms of the option agreement, the Company has the option to acquire a 100% interest in the Titan Gold property by completing the following option payments, common share issuances and exploration expenditures, subject to regulatory approval: Due Dates Option payments Issuance of FE Battery common shares On signing (paid and issued) 12,500 157,895 October 2, 2021 18,000 Nil October 2, 2022 28,000 Nil October 2, 2023 40,000 Nil The Titan Gold property is subject to a 1.5% NSR royalty. The Company will have the option to reduce the NSR by 0.5% to 1.0% by paying $500,000. (r) Trix Lithium Property On March 13, 2023, the Company entered into an option agreement to acquire a 100% interest in the Trix Lithium Property (“Trix Lithium”). Trix Lithium is located in in the Georgia Lake area in northwestern Ontario and is comprised of 24 mining claims covering approximately 11,000 hectares. Under the terms of the option agreement, the Company has the option to acquire a 100% interest in the Trix Lithium property by completing the following option payments, common share issuances and exploration expenditures, subject to regulatory approval: Due Dates Option payments Issuance of FE Battery Minimum ($) Cumulative ($) On signing 25,000 (paid) 83,333 (accrued) Nil Nil March 13, 2024 25,000 1,500,000 100,000 100,000 March 13, 2025 25,000 500,000 200,000 300,000 March 13, 2026 100,000 500,000 400,000 700,000 The Trix Lithium property is subject to a 2.0% NSR royalty. The Company will have the option to reduce the NSR by 1% to 1.0% by paying $1,000,000. Exploration and evaluation expenditures recorded in the statements of loss and comprehensive loss for the year ended March 31, 2023, 2022 and 2021 are as follows: Year ended Assay and Drilling and Field Geological Geological Land claims Total Ontario Jubilee Lithium $ - $ - $ - $ 29,465 $ 34,830 $ 64,295 Trix Lithium 7,000 25,750 32,750 Quebec Titan Gold 36,450 - 32,400 20,250 - - 89,100 Augustus Lithium 20,634 733,741 216,690 176,850 326,948 1,474,863 General Exploration 8,401 - 2,214 149,050 - - 159,665 Total $ 72,485 $ 733,741 $ 251,304 $ 401,365 $ 361,778 $ - $ 1,820,673 Year ended Assay and Drilling and Field Geological Geological Land claims Total British Columbia Kokanee Creek $ - $ - $ 17,000 $ 47,500 $ 10,000 $ - $ 74,500 Ontario Phyllis Cobalt 9,797 11,250 - - - - 21,047 Quebec Titan Gold - - - 75 - - 75 Augustus Lithium 115,584 822,454 208,742 280,223 73,665 1,593 1,502,261 General Exploration - - - 11,238 - - 11,238 Total $ 125,381 $ 833,704 $ 225,742 $ 339,036 $ 83,665 $ 1,593 $ 1,609,121 Year ended Assay and Drilling and Field Geological Geological Land claims Total British Columbia Kokanee Creek $ 5,000 $ - $ 11,600 $ 17,500 $ 13,520 $ 1,200 $ 48,820 Ontario Scramble Mine Gold 6,472 - 3,169 34,826 4,762 - 49,229 Shaw Gold - - 713 - - - 713 Quebec Titan Gold - 3,200 - 2,700 44,737 - 50,637 Augustus Lithium 4,163 - 9,331 30,450 24,408 - 68,352 Canadian Lithium - - - 3,500 11,250 - 14,750 General Exploration - - 4,100 9,500 - - 13,600 Total $ 15,635 $ 3,200 $ 28,913 $ 98,476 $ 98,677 $ 1,200 $ 246,101 |