Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39918 | |
Entity Registrant Name | Perpetua Resources Corp. | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 405 S. 8th Street | |
Entity Address, Address Line Two | Ste 201 | |
Entity Address State Or Province | ID | |
Entity Address, City or Town | Boise | |
Entity Address, Postal Zip Code | 83702 | |
City Area Code | 208 | |
Local Phone Number | 901-3060 | |
Title of 12(b) Security | Common Shares, without par value | |
Trading Symbol | PPTA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,267,783 | |
Entity Central Index Key | 0001526243 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 7,104,937 | $ 22,667,047 |
Receivables | 1,978,508 | 280,150 |
Prepaid expenses | 1,353,327 | 614,930 |
TOTAL CURRENT ASSETS | 10,436,772 | 23,562,127 |
NON-CURRENT ASSETS | ||
Buildings and equipment, net | 389,252 | 294,980 |
Right-of-use assets | 54,836 | 68,675 |
Environmental reclamation bond (Note 5) | 3,000,000 | 3,000,000 |
Mineral properties and interest (Note 3) | 72,795,365 | 72,519,373 |
TOTAL ASSETS | 86,676,225 | 99,445,155 |
CURRENT LIABILITIES | ||
Trade and other payables | 5,535,730 | 2,741,516 |
Lease liabilities | 55,279 | 70,449 |
CWA settlement payable (Note 6) | 500,000 | |
Environmental reclamation liabilities (Note 5) | 2,297,523 | 9,590,766 |
TOTAL CURRENT LIABILITIES | 8,388,532 | 12,402,731 |
NON-CURRENT LIABILITIES | ||
Warrant derivative | 1,732 | |
CWA settlement payable (Note 6) | 4,500,000 | |
Environmental reclamation liabilities (Note 5) | 456,744 | 1,210,170 |
TOTAL LIABILITIES | 13,345,276 | 13,614,633 |
COMMITMENTS AND CONTINGENCIES (Note 6) | ||
SHAREHOLDERS' EQUITY (Note 4) | ||
Common shares, no par value, unlimited shares authorized, 63,202,408 and 63,011,777 shares outstanding, respectively | 616,330,139 | 615,553,448 |
Additional paid-in capital | 33,830,533 | 32,203,858 |
Accumulated deficit | (576,829,723) | (561,926,784) |
TOTAL SHAREHOLDERS' EQUITY | 73,330,949 | 85,830,522 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 86,676,225 | $ 99,445,155 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares outstanding | 63,202,408 | 63,011,777 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
EXPENSES | ||||
Corporate salaries and benefits | $ 393,656 | $ 453,330 | $ 1,205,824 | $ 1,281,617 |
Depreciation | 23,846 | 15,318 | 59,548 | 41,654 |
Directors' fees | 30,158 | 92,874 | 310,268 | 445,348 |
Exploration | 8,664,205 | 4,589,966 | 20,683,257 | 13,456,304 |
Environmental liability expense | 22,285 | 232,776 | 604,222 | 898,146 |
CWA settlement expense (Note 6) | 5,000,000 | |||
General and administration | 160,264 | 187,733 | 454,543 | 570,355 |
Professional fees | 230,243 | 223,160 | 875,327 | 1,474,356 |
Shareholder and regulatory | 91,177 | 142,984 | 388,307 | 418,050 |
OPERATING LOSS | 9,615,834 | 5,938,141 | 29,581,296 | 18,585,830 |
OTHER EXPENSES (INCOME) | ||||
Change in fair value of warrant derivative | (6,021) | (1,732) | (100,766) | |
Foreign exchange loss (income) | 12,571 | (7,136) | 15,193 | 26,210 |
Grant income | (6,905,691) | (14,273,148) | 0 | |
Interest income | (92,620) | (170,658) | (418,670) | (254,683) |
Total other loss (income) | (6,985,740) | (183,815) | (14,678,357) | (329,239) |
NET LOSS | $ 2,630,094 | $ 5,754,326 | $ 14,902,939 | $ 18,256,591 |
NET LOSS PER SHARE, BASIC | $ 0.04 | $ 0.09 | $ 0.24 | $ 0.29 |
NET LOSS PER SHARE, DILUTED | $ 0.04 | $ 0.09 | $ 0.24 | $ 0.29 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING, BASIC | 63,176,063 | 62,987,859 | 63,120,580 | 62,982,688 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING, DILUTED | 63,176,063 | 62,987,859 | 63,120,580 | 62,982,688 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) | Common Shares | Additional Paid in Capital | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2021 | $ 615,359,152 | $ 29,454,696 | $ (533,213,253) | $ 111,600,595 |
Beginning balance (in shares) at Dec. 31, 2021 | 62,971,859 | |||
Share based compensation | 676,249 | 676,249 | ||
Restricted and performance shares units distributed | $ 12,378 | (12,378) | ||
Restricted and performance shares units distributed (in shares) | 1,667 | |||
Net loss for the period | (6,244,894) | (6,244,894) | ||
Ending balance at Mar. 31, 2022 | $ 615,371,530 | 30,118,567 | (539,458,147) | 106,031,950 |
Ending balance (in shares) at Mar. 31, 2022 | 62,973,526 | |||
Beginning balance at Dec. 31, 2021 | $ 615,359,152 | 29,454,696 | (533,213,253) | 111,600,595 |
Beginning balance (in shares) at Dec. 31, 2021 | 62,971,859 | |||
Net loss for the period | (18,256,591) | |||
Ending balance at Sep. 30, 2022 | $ 615,426,460 | 31,622,273 | (551,469,844) | 95,578,889 |
Ending balance (in shares) at Sep. 30, 2022 | 62,987,859 | |||
Beginning balance at Mar. 31, 2022 | $ 615,371,530 | 30,118,567 | (539,458,147) | 106,031,950 |
Beginning balance (in shares) at Mar. 31, 2022 | 62,973,526 | |||
Share based compensation | 826,400 | 826,400 | ||
Restricted and performance shares units distributed | $ 54,930 | (54,930) | ||
Restricted and performance shares units distributed (in shares) | 14,333 | |||
Net loss for the period | (6,257,371) | (6,257,371) | ||
Ending balance at Jun. 30, 2022 | $ 615,426,460 | 30,890,037 | (545,715,518) | 100,600,979 |
Ending balance (in shares) at Jun. 30, 2022 | 62,987,859 | |||
Share based compensation | 732,236 | 732,236 | ||
Net loss for the period | (5,754,326) | (5,754,326) | ||
Ending balance at Sep. 30, 2022 | $ 615,426,460 | 31,622,273 | (551,469,844) | 95,578,889 |
Ending balance (in shares) at Sep. 30, 2022 | 62,987,859 | |||
Beginning balance at Dec. 31, 2022 | $ 615,553,448 | 32,203,858 | (561,926,784) | 85,830,522 |
Beginning balance (in shares) at Dec. 31, 2022 | 63,011,777 | |||
Share based compensation | 840,827 | 840,827 | ||
Restricted and performance shares units distributed | $ 449,909 | (449,909) | ||
Restricted and performance shares units distributed (in shares) | 115,256 | |||
Exercise of share purchase options | $ 64,687 | (24,015) | 40,672 | |
Exercise of share purchase options (in shares) | 12,500 | |||
Net loss for the period | (4,600,093) | (4,600,093) | ||
Ending balance at Mar. 31, 2023 | $ 616,068,044 | 32,570,761 | (566,526,877) | 82,111,928 |
Ending balance (in shares) at Mar. 31, 2023 | 63,139,533 | |||
Beginning balance at Dec. 31, 2022 | $ 615,553,448 | 32,203,858 | (561,926,784) | 85,830,522 |
Beginning balance (in shares) at Dec. 31, 2022 | 63,011,777 | |||
Net loss for the period | (14,902,939) | |||
Ending balance at Sep. 30, 2023 | $ 616,330,139 | 33,830,533 | (576,829,723) | 73,330,949 |
Ending balance (in shares) at Sep. 30, 2023 | 63,202,408 | |||
Beginning balance at Mar. 31, 2023 | $ 616,068,044 | 32,570,761 | (566,526,877) | 82,111,928 |
Beginning balance (in shares) at Mar. 31, 2023 | 63,139,533 | |||
Share based compensation | 784,282 | 784,282 | ||
Restricted and performance shares units distributed | $ 54,936 | (54,936) | ||
Restricted and performance shares units distributed (in shares) | 13,334 | |||
Exercise of share purchase options | $ 66,034 | (24,515) | 41,519 | |
Exercise of share purchase options (in shares) | 12,500 | |||
Net loss for the period | (7,672,752) | (7,672,752) | ||
Ending balance at Jun. 30, 2023 | $ 616,189,014 | 33,275,592 | (574,199,629) | 75,264,977 |
Ending balance (in shares) at Jun. 30, 2023 | 63,165,367 | |||
Share based compensation | 696,066 | 696,066 | ||
Restricted and performance shares units distributed | $ 22,064 | (22,064) | ||
Restricted and performance shares units distributed (in shares) | 5,475 | |||
Deferred share units distributed | $ 119,061 | (119,061) | ||
Deferred share units distributed (in shares) | 31,566 | |||
Net loss for the period | (2,630,094) | (2,630,094) | ||
Ending balance at Sep. 30, 2023 | $ 616,330,139 | $ 33,830,533 | $ (576,829,723) | $ 73,330,949 |
Ending balance (in shares) at Sep. 30, 2023 | 63,202,408 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
OPERATING ACTIVITIES: | ||||
Net loss | $ (14,902,939) | $ (18,256,591) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Share based compensation (Note 4) | 2,321,175 | 2,234,885 | ||
Depreciation | $ 23,846 | $ 15,318 | 59,548 | 41,654 |
Change in fair value of warrant derivative | (6,021) | (1,732) | (100,766) | |
Environmental liability expense (Note 5) | 22,285 | 232,776 | 604,222 | 898,146 |
Unrealized foreign exchange loss (gain) | (160) | 4,286 | ||
Gain on sale of equipment | (25,000) | (49,173) | ||
Changes in: | ||||
Receivables | (1,698,358) | 159,186 | ||
Prepaid expenses | (738,397) | (11,768) | ||
Trade and other payables | 2,792,882 | (116,024) | ||
CWA settlement payable | 5,000,000 | |||
Environmental reclamation liabilities | (8,650,891) | (2,920,780) | ||
Net cash used in operating activities | (15,239,650) | (18,116,945) | ||
INVESTING ACTIVITIES: | ||||
Investment in mineral properties and interest | (275,992) | (290,039) | ||
Purchase of building and equipment | (153,820) | (98,125) | ||
Proceeds from sale of equipment | 25,000 | 49,173 | ||
Net cash used in investing activities | (404,812) | (338,991) | ||
FINANCING ACTIVITIES: | ||||
Proceeds from exercise of share purchase options | 82,191 | |||
Net cash provided by financing activities | 82,191 | |||
Effect of foreign exchange on cash and cash equivalents | 161 | (4,286) | ||
Net increase (decrease) in cash and cash equivalents | (15,562,110) | (18,460,222) | ||
Cash and cash equivalents, beginning of period | 22,667,047 | 47,852,846 | ||
Cash and cash equivalents, end of period | 7,104,937 | 29,392,624 | 7,104,937 | 29,392,624 |
NONCASH INVESTING AND FINANCING ACTIVITIES | ||||
Recognition of operating lease liability and right-of-use asset | 65,061 | 142,487 | ||
CASH AND CASH EQUIVALENTS | ||||
Cash | 3,104,628 | 6,153,131 | 3,104,628 | 6,153,131 |
Investment savings accounts | 4,000,309 | 17,131,902 | 4,000,309 | 17,131,902 |
GICs and term deposits | 6,107,591 | 6,107,591 | ||
Total cash and cash equivalents | $ 7,104,937 | $ 29,392,624 | $ 7,104,937 | $ 29,392,624 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Nature of Operations and Basis of Presentation | |
Nature of Operations and Basis of Presentation | 1. Perpetua Resources Corp. (the “Corporation”, the “Company”, “Perpetua Resources” or “Perpetua”) was incorporated on February 22, 2011 under the Business Corporation Act The unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of Perpetua Resources Corp. and its wholly owned subsidiaries, Perpetua Resources Idaho, Inc. and Idaho Gold Resource Company, LLC. Intercompany transactions and balances have been eliminated. The unaudited condensed consolidated financial statements do not include all disclosures required of annual consolidated financial statements and, accordingly, should be read in conjunction with our annual financial statements for the year ended December 31, 2022. Operating results for the nine months ended September 30, 2023 may not be indicative of results expected for the full year ending December 31, 2023. Management estimates that the Company’s 2023 effective tax rate will be 0% due to the Company’s cumulative loss position, historical net operating losses (“NOLs”), and other available evidence related to the Company’s ability to generate taxable income. Accordingly, there is no income tax provision or benefit for the nine month period ended September 30, 2023. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the results for the interim periods reported. The Company’s latest liquidity forecast indicates that available cash resources and other sources of liquidity are expected to be exhausted in the first quarter of 2024. In addition, the Company’s payment obligations under the Settlement Agreement will commence in the first half of 2024. The Company intends to fund these payments from cash on hand or funds expected to be raised in connection with construction of the Project. Although the Company’s current capital resources and liquidity include $24.8 million in funding awarded under the Technology Investment Agreement (“TIA”) pursuant to Title III of the Defense Production Act (“DPA”), such funding is available only for the specified costs related to permitting, environmental baseline data monitoring, environmental and technical studies, and advancing construction readiness and is not available to fund the Company’s costs pursuant to its Administrative Settlement and Order on Consent (“ASAOC”) obligations, and certain corporate expenses. Absent additional financing, the Company would no longer be able to meet its ongoing obligations or progress critical permitting efforts. The Company continues to explore various funding opportunities, which may include the issuance of additional equity, new debt, or project specific debt; government funding; and/or other financing opportunities. On May 12, 2023, the Company entered into a Controlled Equity Offering SM We believe our plans outlined above to obtain sufficient funding will be successful although there is no certainty that these plans will result in needed liquidity for a reasonable period of time. However, our expectation of incurring significant ASAOC costs, contributions due under the Settlement Agreement and other costs in the foreseeable future that are not eligible for DPA funding reimbursement and the need for additional funding to further support the development of our planned operations, raise substantial doubt regarding our ability to continue as a going concern for a period of one year after the date that these unaudited condensed consolidated financial statements are issued. These financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business and do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above. Loss per share Basic loss per share is computed by dividing the net loss by the weighted average number of shares outstanding during the reporting period. Diluted loss per share is computed similar to basic loss per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of share purchase options and warrants, if dilutive. The Company’s potential dilutive common shares include outstanding share purchase options, restricted share units, performance share units, deferred share units and warrants. Potentially dilutive shares as of September 30, 2023 and 2022, are as follows: September 30 2023 2022 Share purchase options 1,673,750 1,960,150 Share units 1,375,820 791,440 Warrants — 200,000 Balance 3,049,570 2,951,590 All potentially dilutive shares were excluded from the calculation of diluted loss per share as their exercise and conversion would be anti-dilutive. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | 2. From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards did not or will not have a material impact on the Company’s consolidated financial statements upon adoption. |
Mineral Properties and Interest
Mineral Properties and Interest | 9 Months Ended |
Sep. 30, 2023 | |
Mineral Properties and Interest | |
Mineral Properties and Interest | 3. The Company’s mineral properties and interest at the Stibnite Gold Project totaled $72,795,365 and $72,519,373 as of September 30, 2023 and December 31, 2022, respectively. The Company’s subsidiaries acquired mineral rights to the Stibnite Gold Project through several transactions. All mineral and surface rights, where applicable, are held by the Company’s subsidiaries through patented and unpatented lode mining claims and mill sites, except the Cinnabar option claims which are held under an option to purchase, and all of the Stibnite Gold Project is subject to a 1.7% net smelter returns royalty upon the sale of project-related gold production. Included in mineral properties and interest are annual payments made under option agreements, where the Company is entitled to continue to make annual option payments or, ultimately, purchase certain properties. Annual payments due under option agreements during 2023 are $180,000. As of September 30, 2023, it has not yet been determined that the Project’s mining deposits can be economically and legally extracted or produced because the Project’s estimated reserves do not yet meet the definition of proven reserves under the United States Securities and Exchange Commission (“SEC”) Regulation S-K 1300. Accordingly, development costs related to such reserves will not be capitalized unless they are incurred after such determination. Upon commencement of commercial production, capitalized costs will be amortized over their estimated useful lives or units of production, whichever is a more reliable measure. Although the Company has taken steps to review and verify mineral rights to the properties in which it has an interest, in accordance with industry standards for properties in the exploration stage, these procedures do not guarantee the Company’s title and interests. Mineral title may be subject to unregistered prior agreements and noncompliance with regulatory requirements. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Shareholders' Equity | |
Shareholders' Equity | 4. a. Authorized ● Unlimited number of common shares without par value. ● Unlimited number of first preferred shares without par value. ● Unlimited number of second preferred shares without par value. b. ATM Offering On May 12, 2023, the Company entered into the Sales Agreement providing for the sale by the Company, from time to time, of the Company’s common shares having an aggregate gross offering price of up to $20 million (the “ATM Offering”). The Company expects to raise relatively small amounts of capital from time to time through the ATM Offering for general corporate purposes, which may include, among other things, general corporate, legal and ASAOC expenses. As of September 30, 2023, no common shares have been sold under this agreement. c. Share based compensation Share based compensation was recognized in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Exploration $ 400,306 $ 366,150 $ 1,215,542 $ 998,789 Corporate salaries and benefits 266,349 278,381 795,925 791,399 Directors’ fees 29,411 87,705 309,708 444,697 Total $ 696,066 $ 732,236 $ 2,321,175 $ 2,234,885 Share purchase options A summary of share purchase option activity within the Company’s share-based compensation plan (the “Plan”) for the year ended December 31, 2022 and nine months ended September 30, 2023 is as follows: Number of Weighted Average Options Exercise Price (C$) Balance December 31, 2021 2,497,150 $ 9.15 Options expired (305,000) 8.71 Options cancelled or forfeited (246,500) 9.11 Balance December 31, 2022 1,945,650 $ 9.23 Options exercised (25,000) 4.40 Options cancelled or forfeited (35,500) 11.48 Options expired (211,400) 6.97 Balance September 30, 2023 1,673,750 $ 9.54 During the three and nine months ended September 30, 2023 and 2022, the Company’s total share based compensation from options was $49,628 (2022: $273,155) and $213,670 (2022: $822,415), respectively. No options were granted during the nine months ended September 30, 2023 nor 2022. During the three and nine months ended September 30, 2023, the intrinsic value of share purchase options exercised was $nil and $30,594, respectively. An analysis of outstanding share purchase options as of September 30, 2023 is as follows: Options Outstanding Options Exercisable Range of Exercise Remaining Remaining Prices (C$) Number Price (C$) 1 Life 2 Number Price (C$) 1 Life 2 $3.50 - $5.90 45,000 3.50 1.47 45,000 3.50 1.42 $5.91 - $7.20 428,875 6.26 1.21 428,875 6.26 1.21 $7.21 - $9.70 457,875 9.54 0.89 357,875 9.65 0.45 $9.71 - $11.80 742,000 11.80 2.31 556,500 11.80 2.31 $3.50 - $11.80 1,673,750 9.54 1.62 1,388,250 9.27 1.46 1 Weighted Average Exercise Price (C$) 2 Weighted Average Remaining Contractual Life (Years) As of September 30, 2023, all unvested options are expected to vest and unvested compensation of $78,611 will be recognized. The weighted average remaining amortization period of vested options is 0.25 years. As of September 30, 2023, the intrinsic value of outstanding and exercisable share purchase options is $30,742 and $30,742, respectively. Restricted Share Units The following table summarizes activity for restricted share units (“RSUs”) awarded under the Plan that vest over the required service period of the participant. Weighted Average Share Grant Date Units Fair Value Unvested, December 31, 2021 42,334 $ 5.66 Granted 370,098 4.04 Distributed (vested) (36,168) 5.00 Cancelled (4,308) 4.03 Unvested, December 31, 2022 371,956 $ 4.13 Granted 370,039 3.42 Distributed (vested) (121,340) 4.04 Cancelled (4,453) 3.77 Unvested, September 30, 2023 616,202 $ 3.72 During the nine months ended September 30, 2023, the Company awarded 370,039 RSUs (2022: 370,098 RSUs) with a weighted average grant date fair value of $3.42 per RSU (2022: $4.04) or approximately $1.3 million in total (2022: $1.5 million). During the three and nine months ended September 30, 2023 and 2022, the Company has recognized $306,265 (2022: $268,238)and $956,684 (2022: $700,494), respectively, in compensation expense related to RSUs and expects to record an additional $1.1 million in compensation expense over the next 1.44 years. The unvested units of September 30, 2023 are scheduled to vest as follows: Remainder of 2023 21,166 2024 243,658 2025 228,660 2026 122,718 Total 616,202 Unvested units will be forfeited by participants upon termination of employment in advance of vesting, with the exception of termination due to retirement if certain criteria are met. Performance Share Units The following table summarizes activity for performance share units (“PSUs”) and market-based performance share units (“MPSUs”) awarded under the Plan: Weighted Average Share Grant Date Units Fair Value Unvested, December 31, 2021 10,750 $ 5.66 Granted 267,451 6.73 Distributed (3,750) 3.42 Cancelled (11,185) 5.83 Unvested, December 31, 2022 263,266 $ 6.77 Granted 301,035 5.80 Distributed (12,725) 2.74 Cancelled (3,644) 4.99 Unvested, September 30, 2023 547,932 $ 6.34 During the three and nine months ended September 30, 2023 and 2022, the Company has recognized $292,971 (2022: $143,640) and $801,108 (2022: $360,626), respectively, in compensation expense related to PSUs and MPSUs and expects to record an additional $2.2 million in compensation expense over the next 2.0 years. The unvested units of September 30, 2023 are scheduled to vest as follows: Remainder of 2023 — 2024 3,500 2025 257,524 2026 276,908 2027 10,000 Total 547,932 PSUs Market-based PSUs During the nine months ended September 30, 2023, the Company awarded 277,535 MPSUs (2022: 249,951 MPSUs) that had a weighted grant date fair value of $5.98 (2022: $6.99) per MPSU or approximately $1.65 million (2022: $1.75 million) in total. The grant date fair value of MPSUs was estimated using a Monte Carlo simulation model. Assumptions and estimates utilized in the model include expected volatilities of the Corporation’s share price and the GDXJ Index, the Company’s risk-free interest rate and expected dividends. The probabilities of the actual number of MPSUs expected to vest and resultant actual number of common shares expected to be awarded are reflected in the grant date fair values of the various MPSU awards. The per MPSU grant date fair value for the market condition was based on the following variables: 2023 2022 Grant date fair value $ 5.98 $ 6.99 Risk-free interest rate 4.15 % 1.61 % Expected term (in years) 3.0 3.0 Expected share price volatility 65.74 % 63.35 % Expected dividend yield — — The expected volatility utilized is based on the historical volatilities of the Corporation’s common shares and the GDXJ Index in order to model the stock price movements. The volatility used was calculated over the most recent three year period. The risk-free interest rates used are based on the implied yield available on a U.S. Treasury zero-coupon bill with a term equivalent to the Performance Period. The expected dividend yield of zero was used since it is the mathematical equivalent to reinvesting dividends in each issuing entity over the Performance Period. Deferred Share Units The following table summarizes activity for deferred share units (“DSUs”) awarded under the Plan: Weighted Average Share Grant Date Units Fair Value Outstanding, December 31, 2021 29,213 $ 5.39 Granted 116,462 3.42 Outstanding, December 31, 2022 145,675 3.82 Granted 97,577 3.58 Distributed (31,566) 3.77 Outstanding, September 30, 2023 211,686 $ 3.72 Under the Plan, the Company may issue DSUs to non-employee directors. During the three and nine months ended September 30, 2023, 14,479 (2022: 23,368) and 97,577 (2022: 100,298) share units, respectively with a fair value of $47,202 (2022: $47,203) and $349,713 (2022: $351,350) were granted to the non-employee directors and the related compensation expense was charged to directors’ fees in the unaudited condensed consolidated statements of operations. d. Warrants There was a total of 200,000 warrants outstanding as of December 31, 2022 that expired on May 9, 2023. |
Environmental Reclamation Liabi
Environmental Reclamation Liability | 9 Months Ended |
Sep. 30, 2023 | |
Environmental Reclamation Liability | |
Environmental Reclamation Liability | 5. Environmental Reclamation Liability On January 15, 2021, the Company agreed to an ASAOC. The Company has accounted for its obligation under the ASAOC as an environmental reclamation liability. The aggregate cost of the obligation was estimated to be approximately $7,473,805. Upon the signing of the ASAOC, the Company recorded an immediate expense of $7,473,805 and a corresponding environmental reclamation liability. The provision for the liability associated with the terms of the ASAOC is based on cost estimates developed with the use of engineering consultants, independent contractor quotes and the Company’s internal development team. The timing of cash flows is based on the latest schedule for early action items. The estimated environmental reclamation liability may be subject to change based on changes to cost estimates and is adjusted for actual work performed. On April 13, 2023, after conducting a competitive bidding process, the Company announced it selected Iron Woman Construction and Environmental Services to conduct certain environmental improvements pursuant to the Company’s obligations under the ASAOC. The contract terms, together with scope changes, inflation and increased estimates for fuel usage related to the restoration activities, resulted in an increase to the Company’s forecasted amounts for ASAOC restoration activities and are additions during the nine -month period ended September 30, 2023. During the nine-month period ended September 30, 2023, the Company spent $8.7 million expecting to improve water quality which included moving more than 300,000 tons of legacy mine waste and tailings away from sensitive waterways on site and relocating it to areas where it can be more safely stored. Perpetua anticipates completing the majority of the early action restoration work at site by the end of 2023. Movements in the environmental reclamation liability during the nine months ended September 30, 2023 and 2022 are as follows: Nine months ended September 30, 2023 2022 Balance at beginning of period $ 10,800,936 $ 9,888,200 Additions 604,222 898,146 Work performed on early action items (8,650,891) (2,920,780) Balance at end of period $ 2,754,267 $ 7,865,566 Current portion $ 2,297,523 $ 5,756,965 Non-current portion 456,744 2,108,601 Balance at end of period $ 2,754,267 $ 7,865,566 In 2021, the Company provided $7.5 million in financial assurance for Phase 1 projects under the ASAOC. The Company paid $3.0 million in cash collateral for a surety bond related to the ASAOC statement of work in early 2021. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 6 . a. Mining Claim Assessments The Company currently holds mining claims and mill sites for which it has an annual assessment obligation of $275,992 to maintain the claims in good standing. The Company is committed to these payments indefinitely. Related to the mining claims assessments is a $335,000 bond related to the Company’s exploration activities. b. Stibnite Foundation Upon formation of the Stibnite Foundation on February 26, 2019, the Company became contractually liable for certain future payments to the Stibnite Foundation based on several triggering events, including receipt of a Final Record of Decision issued by the USFS, receipt of all permits and approvals necessary for commencement of construction, commercial production, and of the final reclamation phase. These payments could begin as early as the first half of 2024 based on the current permitting schedule and range from $0.1 million to $1 million (upon commencement of final reclamation phase) in cash and 150,000 common shares of the Company. During commercial production, the Company will make payments to the Stibnite Foundation equal to 1% of Total Comprehensive Income less debt repayments, or a minimum of $0.5 million each year. The Stibnite Foundation will support projects that benefit the communities surrounding the Stibnite Gold Project and was created through the establishment of the Community Agreement between Perpetua Resources Idaho, Inc. and eight communities and counties throughout the West Central Mountains region of Idaho. c. Option Payments on Other Properties The Company is obligated to make option payments on mineral properties in order to maintain an option to purchase these properties. As of September 30, 2023, the option payments due on these properties in 2023 are $180,000, which will be paid this year. The agreements include options to extend. d. Off Balance Sheet Arrangements The Company has no off-balance sheet arrangements as of September 30, 2023 and the date of this report. e. Legal Update The Corporation and its subsidiaries have been parties to an ongoing legal proceeding with the Nez Perce Tribe for alleged violations of the Clean Water Act (“CWA”) related to historical mining activities. In August 2019, the Nez Perce Tribe filed suit in the United States District Court for the District of Idaho. The Corporation promptly filed a motion to dismiss and, in the alternative, a motion to stay the litigation. Both motions were denied. Subsequently, the Corporation filed an answer denying liability and later, the court allowed the Corporation to amend and file a third-party complaint against the Forest Service. The Corporation also filed a separate CWA citizen suit against the United States Forest Service (“USFS” or “Forest Service”) alleging that several of the point source discharges, as alleged by the Nez Perce Tribe in its complaint, were occurring on lands owned and controlled by the United States. Pursuant to the terms of the voluntary ASAOC executed in January 2021 with the U.S. Environmental Protection Agency (“U.S. EPA”) and the United States Department of Agriculture, the Corporation agreed to dismiss its pending actions against the Forest Service without prejudice. The remaining parties to the ongoing legal proceeding agreed to stay the litigation and explore Alternative Dispute Resolution options through court-ordered mediation. On August 8, 2023, the Company and the Nez Perce Tribe filed a final Settlement Agreement (the “Settlement Agreement”) to resolve the CWA litigation. The parties jointly asked the court to approve the Settlement Agreement and dismiss the case without prejudice. The Settlement Agreement provides for total payments of $5 million by Perpetua over a four-year period. This includes $4 million of contributions by Perpetua to a South Fork Salmon Water Quality Enhancement Fund (the “Fund”) to be used by the Nez Perce Tribe to support water quality improvement projects in the South Fork Salmon River watershed and $1 million of reimbursements to the Nez Perce Tribe for legal expenses. Following a 45 The voluntary CERCLA ASAOC entered into by the Corporation, the U.S. EPA, and the United States Department of Agriculture requires numerous early cleanup actions to occur over the next several years at the Stibnite Gold Project site (the “Stibnite Site”). Perpetua Resources Idaho, Inc. is presently developing and executing the Phase 1 early cleanup actions (known under CERCLA as “time critical removal actions”) that, after final work plan approval by the federal agencies, are designated to efficiently improve water quality in a number of areas on the Stibnite Site. Construction of time critical removal actions began in the summer of 2022, and significant progress was achieved to complete the voluntary Phase 1 Stibnite Site cleanup during the limited work season. During the nine-month period ended September 30, 2023, the Company spent $8.7 million expecting to improve water quality which included moving more than 300,000 tons of legacy mine waste and tailings away from sensitive waterways on site and relocating it to areas where it can be more safely stored. Perpetua anticipates completing the majority of the early action restoration work at site by the end of 2023.Other longer-term proposed actions relating to Project operations are being evaluated through the NEPA process. |
Government Grants
Government Grants | 9 Months Ended |
Sep. 30, 2023 | |
Government Grants | |
Government Grants | 7. Government Grants Small Business Innovation Research (“SBIR”) Grant Defense Production Act (“DPA”) Grant DOD Ordnance Technology Consortium (“DOTC”) Grant During the three and nine months ended September 30, 2023, $2,225,509 and $2,225,509, respectively, were recognized as grant income within other income (expense) on the unaudited condensed consolidated statement of operations. No grant income was recognized during the same period in 2022. As of September 30, 2023 and December 31, 2022, grant receivable was $418,795 and $nil, respectively, and is included in receivables on the unaudited condensed consolidated balance sheets. The Company anticipates recognizing approximately $3,450,000 of additional grant income for the next three months ended December 31, 2023. Accounting for these DOD grants does not fall under ASC 606, Revenue from Contracts with Customers, as the DOD does not meet the definition of a customer under this standard. The DOD grant proceeds, which will be used to reimburse expenses incurred, meet the definition of grants related to expenses as the primary purpose for the payments is to fund research and development on trisulfides and the advancement of the Company’s Stibnite Gold Project. A total of $6,905,691 and $14,273,148 grant income was recognized within other income (expense) on the unaudited condensed consolidated statement of operations during the three and nine months ended September 30, 2023, respectively. No grant income was recognized during the same period in 2022. At September 30, 2023 and December 31, 2022, grant receivable was $1,919,706 and $50,000, respectively, and is included in receivables on the unaudited condensed consolidated balance sheets. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Nature of Operations and Basis of Presentation | |
Schedule of potentially dilutive shares | September 30 2023 2022 Share purchase options 1,673,750 1,960,150 Share units 1,375,820 791,440 Warrants — 200,000 Balance 3,049,570 2,951,590 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Schedule of share based compensation recognized in the consolidated statement of operations | Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Exploration $ 400,306 $ 366,150 $ 1,215,542 $ 998,789 Corporate salaries and benefits 266,349 278,381 795,925 791,399 Directors’ fees 29,411 87,705 309,708 444,697 Total $ 696,066 $ 732,236 $ 2,321,175 $ 2,234,885 |
Schedule of options activity | Number of Weighted Average Options Exercise Price (C$) Balance December 31, 2021 2,497,150 $ 9.15 Options expired (305,000) 8.71 Options cancelled or forfeited (246,500) 9.11 Balance December 31, 2022 1,945,650 $ 9.23 Options exercised (25,000) 4.40 Options cancelled or forfeited (35,500) 11.48 Options expired (211,400) 6.97 Balance September 30, 2023 1,673,750 $ 9.54 |
Schedule of option exercise price ranges | An analysis of outstanding share purchase options as of September 30, 2023 is as follows: Options Outstanding Options Exercisable Range of Exercise Remaining Remaining Prices (C$) Number Price (C$) 1 Life 2 Number Price (C$) 1 Life 2 $3.50 - $5.90 45,000 3.50 1.47 45,000 3.50 1.42 $5.91 - $7.20 428,875 6.26 1.21 428,875 6.26 1.21 $7.21 - $9.70 457,875 9.54 0.89 357,875 9.65 0.45 $9.71 - $11.80 742,000 11.80 2.31 556,500 11.80 2.31 $3.50 - $11.80 1,673,750 9.54 1.62 1,388,250 9.27 1.46 1 Weighted Average Exercise Price (C$) 2 Weighted Average Remaining Contractual Life (Years) |
Schedule of activity for restricted share units awarded | Weighted Average Share Grant Date Units Fair Value Unvested, December 31, 2021 42,334 $ 5.66 Granted 370,098 4.04 Distributed (vested) (36,168) 5.00 Cancelled (4,308) 4.03 Unvested, December 31, 2022 371,956 $ 4.13 Granted 370,039 3.42 Distributed (vested) (121,340) 4.04 Cancelled (4,453) 3.77 Unvested, September 30, 2023 616,202 $ 3.72 |
Schedule of restricted share units scheduled to vest | Remainder of 2023 21,166 2024 243,658 2025 228,660 2026 122,718 Total 616,202 |
Schedule of activity for performance share units | Weighted Average Share Grant Date Units Fair Value Unvested, December 31, 2021 10,750 $ 5.66 Granted 267,451 6.73 Distributed (3,750) 3.42 Cancelled (11,185) 5.83 Unvested, December 31, 2022 263,266 $ 6.77 Granted 301,035 5.80 Distributed (12,725) 2.74 Cancelled (3,644) 4.99 Unvested, September 30, 2023 547,932 $ 6.34 |
Schedule of performance share units scheduled to vest | Remainder of 2023 — 2024 3,500 2025 257,524 2026 276,908 2027 10,000 Total 547,932 |
Schedule of activity in deferred share units | Weighted Average Share Grant Date Units Fair Value Outstanding, December 31, 2021 29,213 $ 5.39 Granted 116,462 3.42 Outstanding, December 31, 2022 145,675 3.82 Granted 97,577 3.58 Distributed (31,566) 3.77 Outstanding, September 30, 2023 211,686 $ 3.72 |
MPSU's | |
Schedule of assumptions to value options and performance shares | 2023 2022 Grant date fair value $ 5.98 $ 6.99 Risk-free interest rate 4.15 % 1.61 % Expected term (in years) 3.0 3.0 Expected share price volatility 65.74 % 63.35 % Expected dividend yield — — |
Environmental Reclamation Lia_2
Environmental Reclamation Liability (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Environmental Reclamation Liability | |
Schedule of movements in the environmental reclamation liability | Nine months ended September 30, 2023 2022 Balance at beginning of period $ 10,800,936 $ 9,888,200 Additions 604,222 898,146 Work performed on early action items (8,650,891) (2,920,780) Balance at end of period $ 2,754,267 $ 7,865,566 Current portion $ 2,297,523 $ 5,756,965 Non-current portion 456,744 2,108,601 Balance at end of period $ 2,754,267 $ 7,865,566 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | May 12, 2023 USD ($) | Sep. 30, 2023 USD ($) segment | |
Nature of Operations and Basis of Presentation | |||
Number of operating segments | segment | 1 | ||
Effective tax rate | 0% | ||
Income tax provision (benefit) | $ 0 | ||
Funding awarded under the Technology Investment Agreement | $ 24,800,000 | $ 24,800,000 | |
Maximum | Controlled Equity Offering | |||
Nature of Operations and Basis of Presentation | |||
Common shares aggregate gross offering price | $ 20,000,000 | $ 20,000,000 | |
Subsidiaries that control the Stibnite Gold Project. | |||
Nature of Operations and Basis of Presentation | |||
Principal asset percentage of ownership | 100% | 100% |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation - Potentially dilutive shares (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Nature of Operations and Basis of Presentation | ||
Balance | 3,049,570 | 2,951,590 |
Share purchase options | ||
Nature of Operations and Basis of Presentation | ||
Balance | 1,673,750 | 1,960,150 |
Share units | ||
Nature of Operations and Basis of Presentation | ||
Balance | 1,375,820 | 791,440 |
Warrants | ||
Nature of Operations and Basis of Presentation | ||
Balance | 200,000 |
Mineral Properties and Intere_2
Mineral Properties and Interest (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Mineral Properties and Interest | ||
Mineral properties and interest | $ 72,795,365 | $ 72,519,373 |
Percentage of net smelter returns royalty | 1.70% | |
Annual payments due under option agreements | $ 180,000 |
Shareholders' Equity - Authoriz
Shareholders' Equity - Authorized (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
May 12, 2023 | Sep. 30, 2023 | |
Shareholders' Equity | ||
Common stock, shares authorized (unlimited) | Unlimited | |
Common stock, no par value | $ 0 | |
ATM offering | ||
Shareholders' Equity | ||
Common stock, shares issued | 0 | |
Maximum | ATM offering | ||
Shareholders' Equity | ||
Common shares aggregate gross offering price | $ 20 | |
First preferred shares | ||
Shareholders' Equity | ||
Preferred stock, shares authorized (unlimited) | Unlimited | |
Preferred stock, no par value | $ 0 | |
Second preferred shares | ||
Shareholders' Equity | ||
Preferred stock, shares authorized (unlimited) | Unlimited | |
Preferred stock, no par value | $ 0 |
Shareholders' Equity - Share ba
Shareholders' Equity - Share based compensation recognized in Consolidated Statement of Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Shareholders' Equity | ||||
Share based compensation | $ 696,066 | $ 732,236 | $ 2,321,175 | $ 2,234,885 |
Exploration | ||||
Shareholders' Equity | ||||
Share based compensation | 400,306 | 366,150 | 1,215,542 | 998,789 |
Corporate salaries and benefits | ||||
Shareholders' Equity | ||||
Share based compensation | 266,349 | 278,381 | 795,925 | 791,399 |
Directors' fees | ||||
Shareholders' Equity | ||||
Share based compensation | $ 29,411 | $ 87,705 | $ 309,708 | $ 444,697 |
Shareholders' Equity - Share pu
Shareholders' Equity - Share purchase option activity within the Company's share-based compensation plan (Details) - Stock Option Plan - Share purchase options - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Number of Options | ||
Balance, beginning of the year | 1,945,650 | 2,497,150 |
Options expired | (211,400) | (305,000) |
Options exercised | (25,000) | |
Options cancelled or forfeited | (35,500) | (246,500) |
Balance, end of the year | 1,673,750 | 1,945,650 |
Weighted Average Exercise Price (C$) | ||
Balance, beginning of the year, Weighted Average Exercise Price | $ 9.23 | $ 9.15 |
Options expired, Weighted Average Exercise Price | 6.97 | 8.71 |
Options cancelled or forfeited, Weighted Average Exercise Price | 9.11 | |
Options exercised, Weighted Average Exercise Price | 4.40 | |
Options cancelled or forfeited, Weighted Average Exercise price | 11.48 | |
Balance, end of the year, Weighted Average Exercise Price | $ 9.54 | $ 9.23 |
Shareholders' Equity - Analysis
Shareholders' Equity - Analysis of outstanding share purchase options (Details) - Stock Option Plan - Share purchase options | 9 Months Ended | |||
Sep. 30, 2023 $ / shares shares | Sep. 30, 2023 $ / shares $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Shareholders' Equity | ||||
Options Outstanding, Number | shares | 1,673,750 | 1,673,750 | 1,945,650 | 2,497,150 |
Options Outstanding, Price | $ 9.54 | $ 9.54 | $ 9.23 | $ 9.15 |
$3.50 - $5.90 | ||||
Shareholders' Equity | ||||
Range of Exercise Prices, minimum | 3.50 | |||
Range of Exercise Prices, maximum | $ 5.90 | |||
Options Outstanding, Number | shares | 45,000 | 45,000 | ||
Options Outstanding, Price | $ 3.50 | $ 3.50 | ||
Options Outstanding, Remaining Life | 1 year 5 months 19 days | 1 year 5 months 19 days | ||
Options Exercisable, Number | shares | 45,000 | 45,000 | ||
Options Exercisable, Price | $ 3.50 | $ 3.50 | ||
Options Exercisable, Remaining Life | 1 year 5 months 1 day | 1 year 5 months 1 day | ||
$5.91 - $7.20 | ||||
Shareholders' Equity | ||||
Range of Exercise Prices, minimum | $ 5.91 | |||
Range of Exercise Prices, maximum | $ 7.20 | |||
Options Outstanding, Number | shares | 428,875 | 428,875 | ||
Options Outstanding, Price | $ 6.26 | $ 6.26 | ||
Options Outstanding, Remaining Life | 1 year 2 months 15 days | 1 year 2 months 15 days | ||
Options Exercisable, Number | shares | 428,875 | 428,875 | ||
Options Exercisable, Price | $ 6.26 | $ 6.26 | ||
Options Exercisable, Remaining Life | 1 year 2 months 15 days | 1 year 2 months 15 days | ||
$7.21 - $9.70 | ||||
Shareholders' Equity | ||||
Range of Exercise Prices, minimum | $ 7.21 | |||
Range of Exercise Prices, maximum | $ 9.70 | |||
Options Outstanding, Number | shares | 457,875 | 457,875 | ||
Options Outstanding, Price | $ 9.54 | $ 9.54 | ||
Options Outstanding, Remaining Life | 10 months 20 days | 10 months 20 days | ||
Options Exercisable, Number | shares | 357,875 | 357,875 | ||
Options Exercisable, Price | $ 9.65 | $ 9.65 | ||
Options Exercisable, Remaining Life | 5 months 12 days | 5 months 12 days | ||
$9.71 - $11.80 | ||||
Shareholders' Equity | ||||
Range of Exercise Prices, minimum | $ 9.71 | |||
Range of Exercise Prices, maximum | $ 11.80 | |||
Options Outstanding, Number | shares | 742,000 | 742,000 | ||
Options Outstanding, Price | $ 11.80 | $ 11.80 | ||
Options Outstanding, Remaining Life | 2 years 3 months 21 days | 2 years 3 months 21 days | ||
Options Exercisable, Number | shares | 556,500 | 556,500 | ||
Options Exercisable, Price | $ 11.80 | $ 11.80 | ||
Options Exercisable, Remaining Life | 2 years 3 months 21 days | 2 years 3 months 21 days | ||
$3.50 - $11.80 | ||||
Shareholders' Equity | ||||
Range of Exercise Prices, minimum | $ 3.50 | |||
Range of Exercise Prices, maximum | $ 11.80 | |||
Options Outstanding, Number | shares | 1,673,750 | 1,673,750 | ||
Options Outstanding, Price | $ 9.54 | $ 9.54 | ||
Options Outstanding, Remaining Life | 1 year 7 months 13 days | 1 year 7 months 13 days | ||
Options Exercisable, Number | shares | 1,388,250 | 1,388,250 | ||
Options Exercisable, Price | $ 9.27 | $ 9.27 | ||
Options Exercisable, Remaining Life | 1 year 5 months 15 days | 1 year 5 months 15 days |
Shareholders' Equity - Share _2
Shareholders' Equity - Share purchase options (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Shareholders' Equity | ||||
Share based compensation | $ 696,066 | $ 732,236 | $ 2,321,175 | $ 2,234,885 |
Grant date fair value of options granted | 47,203 | 351,350 | ||
Stock Option Plan | Share purchase options | ||||
Shareholders' Equity | ||||
Share based compensation | 49,628 | $ 273,155 | $ 213,670 | $ 822,415 |
Options granted | 0 | 0 | ||
Unvested compensation not yet recognized | 78,611 | $ 78,611 | ||
Unvested compensation period for recognition | 3 months | |||
Intrinsic value of outstanding share purchase options | 30,742 | $ 30,742 | ||
Intrinsic value of exercisable share purchase options | 30,742 | 30,742 | ||
Grant date fair value of options granted | $ 0 | $ 30,594 |
Shareholders' Equity - Activity
Shareholders' Equity - Activity for restricted share units awarded (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Shareholders' Equity | |||||
Share based compensation | $ 696,066 | $ 732,236 | $ 2,321,175 | $ 2,234,885 | |
Grant date fair value | $ 1,300,000 | $ 1,500,000 | |||
Restricted Share Units | |||||
Shareholders' Equity | |||||
Unvested shares balance at beginning of the year | 371,956 | 42,334 | 42,334 | ||
Granted (in shares) | 370,039 | 370,098 | 370,098 | ||
Distributed (vested), (in shares) | 121,340 | 36,168 | |||
Cancelled (in shares) | (4,453) | (4,308) | |||
Unvested shares balance at end of the year | 616,202 | 616,202 | 371,956 | ||
Unvested, Weighted Average Grant Date Fair Value, balance at beginning of the year | $ 4.13 | $ 5.66 | $ 5.66 | ||
Granted, Weighted Average Grant Date Fair Value | 3.42 | $ 4.04 | 4.04 | ||
Distributed (vested), Weighted Average Grant Date Fair Value | 4.04 | 5 | |||
Cancelled, Weighted Average Grant Date Fair Value | 3.77 | 4.03 | |||
Unvested, Weighted Average Grant Date Fair Value, balance at end of the year | $ 3.72 | $ 3.72 | $ 4.13 | ||
Share based compensation | $ 306,265 | $ 268,238 | $ 956,684 | $ 700,494 | |
Unvested compensation not yet recognized | $ 1,100,000 | $ 1,100,000 | |||
Remaining life of exercisable options | 1 year 5 months 8 days |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted share units and Performance share units scheduled to vest (Details) - shares | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted Share Units | |||
Shareholders' Equity | |||
Remainder of 2023 | 21,166 | ||
2024 | 243,658 | ||
2025 | 228,660 | ||
2026 | 122,718 | ||
Total | 616,202 | 371,956 | 42,334 |
PSUs and MPSUs | |||
Shareholders' Equity | |||
2024 | 3,500 | ||
2025 | 257,524 | ||
2026 | 276,908 | ||
2027 | 10,000 | ||
Total | 547,932 | 263,266 | 10,750 |
Shareholders' Equity - Activi_2
Shareholders' Equity - Activity for Performance share units (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Shareholders' Equity | |||||
Share based compensation | $ 696,066 | $ 732,236 | $ 2,321,175 | $ 2,234,885 | |
Performance Share Units | |||||
Shareholders' Equity | |||||
Unvested shares balance at end of the year | 547,932 | 547,932 | 263,266 | ||
Granted (in shares) | 301,035 | 267,451 | |||
Distributed (vested), Shares | (12,725) | (3,750) | |||
Cancelled (in shares) | (3,644) | (11,185) | |||
Unvested shares balance at beginning of the year | 263,266 | 10,750 | 10,750 | ||
Granted, Weighted Average Grant Date Fair Value | $ 5.80 | $ 6.73 | |||
Distributed (vested), Weighted Average Grant Date Fair Value | 2.74 | 3.42 | |||
Cancelled, Weighted Average Grant Date Fair Value | 4.99 | 5.83 | |||
Unvested, Weighted Average Grant Date Fair Value, balance at end of the year | $ 6.34 | 6.34 | 6.77 | ||
Unvested, Weighted Average Grant Date Fair Value, balance at beginning of the year | $ 6.77 | $ 5.66 | $ 5.66 | ||
Share based compensation | $ 292,971 | $ 143,640 | $ 801,108 | $ 360,626 | |
Unvested compensation not yet recognized | $ 2,200,000 | $ 2,200,000 | |||
Unvested compensation period for recognition | 2 years |
Shareholders' Equity - PSUs, MP
Shareholders' Equity - PSUs, MPSUs and Deferred share units (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 36 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 05, 2025 | |
Shareholders' Equity | |||||
Grant date fair value of options granted | $ 47,203 | $ 351,350 | |||
Performance Share Units | |||||
Shareholders' Equity | |||||
Share units granted | 23,500 | 17,500 | |||
Weighted average grant date fair value option granted | $ 3.67 | $ 2.97 | |||
Total fair value of units awarded | $ 86,165 | $ 52,048 | |||
Deferred Share Units | |||||
Shareholders' Equity | |||||
Share units granted | 14,479 | 23,368 | 97,577 | 100,298 | |
Grant date fair value of options granted | $ 47,202 | $ 349,713 | |||
MPSU's | |||||
Shareholders' Equity | |||||
Share units granted | 277,535 | 249,951 | |||
Total fair value of units awarded | $ 1,650,000 | $ 1,750,000 | |||
Performance Period | 3 years | ||||
Granted, Weighted Average Grant Date Fair Value | $ 5.98 | $ 6.99 | |||
MPSU's | Minimum | |||||
Shareholders' Equity | |||||
Vesting right percentage | 0% | ||||
MPSU's | Maximum | |||||
Shareholders' Equity | |||||
Vesting right percentage | 200% |
Shareholders' Equity - Weighted
Shareholders' Equity - Weighted average inputs used in the Monte Carlo simulation model (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Shareholders' Equity | ||
Grant date fair value | $ 5.98 | $ 6.99 |
Risk-free interest rate | 4.15% | 1.61% |
Expected term (in years) | 3 years | 3 years |
Expected share price volatility | 65.74% | 63.35% |
Shareholders' Equity - Activi_3
Shareholders' Equity - Activity for deferred share units (Details) - Deferred Share Units - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Shareholders' Equity | ||
Balance, beginning of the year | 145,675 | 29,213 |
Granted | 97,577 | 116,462 |
Distributed (vested), Shares | (31,566) | |
Balance, end of the year | 211,686 | 145,675 |
Balance, beginning of the year, Weighted Average Exercise Price | $ 3.82 | $ 5.39 |
Granted, Weighted Average Exercise Price | 3.58 | 3.42 |
Distributed (vested), Weighted Average Grant Date Fair Value | 3.77 | |
Balance, end of the year, Weighted Average Exercise Price | $ 3.72 | $ 3.82 |
Shareholders' Equity - Warrants
Shareholders' Equity - Warrants (Details) | Dec. 31, 2022 shares |
Shareholders' Equity | |
Number of warrants outstanding | 200,000 |
Environmental Reclamation Lia_3
Environmental Reclamation Liability (Details) | 3 Months Ended | 9 Months Ended | ||||
Jan. 15, 2021 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) T | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Environmental Reclamation Liability | ||||||
Aggregate undiscounted cost of the obligation | $ 7,473,805 | |||||
Environmental liability expense (Note 5) | 7,473,805 | $ 22,285 | $ 232,776 | $ 604,222 | $ 898,146 | |
Payment for cash collateral | $ 7,500,000 | |||||
Cash collateral for a surety bond | $ 3,000,000 | |||||
Amounts paid to improve water quality | $ 8,700,000 | |||||
Mine waste and tailings relocated (in tons) | T | 300,000 |
Environmental Reclamation Lia_4
Environmental Reclamation Liability - Movements in the environmental reclamation liability (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jan. 15, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Environmental Reclamation Liability | ||||||
Balance at beginning of period | $ 10,800,936 | $ 9,888,200 | ||||
Environmental liability expense | $ 7,473,805 | $ 22,285 | $ 232,776 | 604,222 | 898,146 | |
Work performed on early action items | (8,650,891) | (2,920,780) | ||||
Current portion | 2,297,523 | 5,756,965 | 2,297,523 | 5,756,965 | $ 9,590,766 | |
Non-current portion | 456,744 | 2,108,601 | 456,744 | 2,108,601 | $ 1,210,170 | |
Balance at end of period | $ 2,754,267 | $ 7,865,566 | $ 2,754,267 | $ 7,865,566 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended | 9 Months Ended | ||
Aug. 08, 2023 USD ($) | Feb. 26, 2019 USD ($) community shares | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) T | |
Commitment and Contingencies | ||||
Off-balance sheet arrangements | $ 0 | |||
CWA settlement expense (Note 6) | 5,000,000 | |||
Settlement expense, current | 500,000 | |||
Settlement expense, long-term | 4,500,000 | |||
Amounts paid to improve water quality | $ 8,700,000 | |||
Mine waste and tailings relocated (in tons) | T | 300,000 | |||
CWA litigation settlement agreement | ||||
Commitment and Contingencies | ||||
Settlement amount awarded to other party | $ 5,000,000 | |||
Litigation settlement amount payable period | 4 years | |||
Review period to request court approval of Dismissal and Settlement Agreement | 45 days | |||
CWA settlement expense (Note 6) | $ 5,000,000 | |||
Settlement expense, current | $ 500,000 | |||
Settlement expense, long-term | 4,500,000 | |||
Nez Perce Tribe | CWA litigation settlement agreement | ||||
Commitment and Contingencies | ||||
Settlement amount to be paid to the South Fork Salmon Water Quality Enhancement Fund | $ 4,000,000 | |||
Settlement amount to be paid to reimburse other party for legal expenses | $ 1,000,000 | |||
Related Party | Stibnite Foundation | ||||
Commitment and Contingencies | ||||
Capital commitments payable in common shares | shares | 150,000 | |||
Percentage of total comprehensive income payable | 1% | |||
Minimum payments to be made during commercial production | $ 500,000 | |||
Number of communities with whom Community Agreement was established | community | 8 | |||
Related Party | Stibnite Foundation | Minimum | ||||
Commitment and Contingencies | ||||
Commitments payable | $ 100,000 | |||
Related Party | Stibnite Foundation | Maximum | ||||
Commitment and Contingencies | ||||
Commitments payable | $ 1,000,000 | |||
Mining Claim Assessments | ||||
Commitment and Contingencies | ||||
Annual assessment obligation | 275,992 | |||
Bond issued | 335,000 | |||
Option Payments On Other Properties | ||||
Commitment and Contingencies | ||||
Commitments payable | $ 180,000 |
Government Grants (Details)
Government Grants (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jul. 25, 2023 USD ($) | Sep. 30, 2022 USD ($) item | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Aug. 18, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 16, 2022 USD ($) | |
Government Assistance | ||||||||
Grant income | $ 6,905,691 | $ 14,273,148 | $ 0 | |||||
Government grants receivable | 1,919,706 | 1,919,706 | $ 50,000 | |||||
Other income (expense) | ||||||||
Government Assistance | ||||||||
Grant income | 6,905,691 | 14,273,148 | ||||||
Small Business Innovation Research ("SBIR") Grant | ||||||||
Government Assistance | ||||||||
Number of grants awarded | item | 2 | |||||||
Amount of grants awarded | $ 200,000 | $ 200,000 | ||||||
Estimated additional grant income | 0 | |||||||
Small Business Innovation Research ("SBIR") Grant | Other income (expense) | ||||||||
Government Assistance | ||||||||
Grant income | 24,999 | 124,997 | ||||||
Defense Production Act ("DPA") Grant | ||||||||
Government Assistance | ||||||||
Reimbursed costs incurred | 6,185,455 | 10,430,060 | ||||||
Estimated additional grant income | $ 4,400,000 | |||||||
Period for receiving additional grant income | 3 months | |||||||
Air force research laboratory award maximum | $ 24,812,062 | |||||||
Defense Production Act ("DPA") Grant | Maximum | ||||||||
Government Assistance | ||||||||
Amount of grants awarded | $ 24,800,000 | |||||||
Defense Production Act ("DPA") Grant | Other income (expense) | ||||||||
Government Assistance | ||||||||
Grant income | 4,655,183 | $ 11,922,642 | ||||||
DOD Ordnance Technology Consortium ("DOTC") Grant | ||||||||
Government Assistance | ||||||||
Grant income | 0 | |||||||
Current estimated amount | $ 15,500,000 | |||||||
Reimbursement for negotiating fee (in percent) | 12% | |||||||
Government grants receivable | 418,795 | 418,795 | ||||||
Estimated additional grant income | $ 3,450,000 | |||||||
Period for receiving additional grant income | 3 months | |||||||
DOD Ordnance Technology Consortium ("DOTC") Grant | Maximum | ||||||||
Government Assistance | ||||||||
Amount of grants awarded | $ 15,500,000 | |||||||
DOD Ordnance Technology Consortium ("DOTC") Grant | Other income (expense) | ||||||||
Government Assistance | ||||||||
Grant income | $ 2,225,509 | $ 2,225,509 |