Promissory Notes Payable and Convertible Debentures (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Key Valuation Inputs

Consistent with the approach above, the following table summarizes the key valuation inputs as at applicable valuation dates:

Reference (2)(4) (5)	Valuation date	Maturity date	Contractual Interest rate			Stock price (US$)		Expected equity volatility			Credit spread			Risk-free rate			Risk- adjusted rate
CD1 note(3)	12-31-22	03-31-25		7.50	%		0.125		120	%		7.08	%		4.32	%		17.85	%
RCD note	12-31-22	03-31-25		9.00	%		0.125		120	%		7.08	%		4.32	%		17.85	%
CD2 note(3)	12-31-22	03-31-25		10.50	%		0.125		120	%		7.08	%		4.32	%		19.76	%
CD1 note(3)	03-31-23	03-31-25		7.50	%		0.082		115	%		11.22	%		4.06	%		21.33	%
RCD note(5)	03-31-23	03-31-25		9.00	%		0.082		115	%		11.22	%		4.06	%		21.33	%
CD2 note(3)	03-31-23	03-31-25		10.50	%		0.082		115	%		11.22	%		4.06	%		23.20	%
RCD note	06-23-23	03-31-25		9.00	%		0.169		120	%		8.28	%		4.83	%		19.37	%
CD1 note(3)	06-30-23	03-31-26		7.50	%		0.186		120	%		7.93	%		4.58	%		18.83	%
CD2 note(3)	06-30-23	03-31-26		10.50	%		0.186		120	%		7.93	%		4.58	%		20.73	%

(1)	The CD1 carried a Discount for Lack of Marketability (“DLOM”) of 5.0% as of the issuance date and as of June 30, 2023. The CD2 carried a DLOM of 10.0% as of the issuance date and June 30, 2023
(2)	CD1 and RCD carry an instrument-specific spread of 7.23%, CD2 carries an instrument-specific spread of 9.32%
(3)	The conversion price of the CD1 is $0.219 and CD2 is $0.226 as of June 30, 2023, and $0.219 and CD2 is $0.212 as of December 31, 2022
(4)	A project risk rate of 13.0% was used for all scenarios of the RCD fair value computations
(5)	The valuation of the RCD is driven by the aggregation of (i) the present value of future potential cash flow to the royalty holder, in the event that the RCD is converted to a royalty, utilizing an estimate of future metal sales and Monte Carlo simulations of future metal prices, and (ii) the computation of the present value assuming no conversion to the 1.85% gross revenue royalty. The valuation of (i) is compared to the valuation of (ii) for each simulation, with the higher value used in the aggregation to arrive at the fair value of the RCD. This results in an implied probability of the RCD being converted to the royalty, in the event that the Stream is advanced. Based on this methodology, as of June 30, 2023 (pre-modification), the implied probability of the RCD being converted to a 1.85% royalty, in the event that the Stream is advanced, was 77%. Credit spread, Risk-free rate, and Risk-adjusted rate shown for the RCD are applicable to the scenario where the Stream is not advanced. There are immaterial differences in these inputs for the scenario where the Stream is advanced.

Schedule of Fair Value Derivative Liability

The resulting fair values of the CD1, RCD, and CD2 at June 30, 2023, and as of December 31, 2022, were as follows:

Instrument Description	June 30, 2023		December 31, 2022
CD1	$	5,812,092	$	5,537,360
RCD		-		10,285,777
CD2		14,644,406		14,063,525
Total	$	20,456,498	$	29,886,662