7. ADVANCE, DEPOSIT AND INVESTMENT IN AKKERMAN FINLAND OY

12 Months Ended

Dec. 31, 2023

Notes

7. ADVANCE, DEPOSIT AND INVESTMENT IN AKKERMAN FINLAND OY

7. ADVANCE, DEPOSIT AND INVESTMENT IN AKKERMAN FINLAND OY 

On February 25, 2022, the Company signed a Share Purchase Agreement with Akkerman Exploration B.V. (“AEbv”) to acquire up to a 100% ownership interest in Akkerman Finland OY (“AFOy”), an entity holding certain mineral rights (the “Property”) in Finland.

The acquisition terms are as follow:

·The Company can earn an initial 49% interest in AFOy in Stage One by issuing 1,470,000 common shares (issued at a value of $95,550), paying €150,000 ($211,800) into AFOy for the purpose of paying existing shareholder loans (paid), and depositing €200,000 ($282,400) into a dedicated account (paid), to be spent on exploration expenditures during the period between the completion of Stage One and the completion of Stage Two. The €200,000 ($282,400) was recorded as an advance to AFOy as of December 31, 2023. 

·As a Stage Two earn-in, the Company has the option, for a period of 12 months from the date of completion of Stage One, to acquire the remaining 51% interest in AFOy, bringing their total interest to 100%. The Company can exercise the Stage Two option by issuing a further 1,530,000 common shares, paying an additional €15,000 for the purposes of paying existing shareholder loans and accrued interest, and depositing an additional €200,000 into a dedicated account for further exploration expenditures. The option to acquire additional 51% interest expired on March 3, 2023.  

During the period between Stage One and Stage Two, AEbv will be the operator for all mining work conducted on the Property. During this same period, the Company and AEbv will form a technical committee comprised of one representative from each party, with AEbv’s representative having the casting vote.

As at December 31, 2023, the Company holds a 49% interest in AFOy (December 31, 2022 – 49%). The investment in associate was assessed for impairment indicators relating to the underlying assets of AFOy in accordance with IAS 36 and IFRS 6.

The year ended December 31, 2023 and 2022 calculation for the Investment in AFOy is as follows:

Investment in AFOy as at January 1, 2022		$	14,155
Payment – initial 49% interest			211,800
Issued shares – initial 49% interest	Note 8(b)(iii)		95,550
Loss on investment in AFOy			(62,973)
Investment in AFOy as at December 31, 2022			258,532
Loss on investment in AFOy			(27,569)
Investment in AFOy as at December 31, 2023		$	230,963

		2023		2022
AFOy’s net loss	$	56,264	$	128,517
The Company’s ownership %		49%		49%
Share of loss of an associate	$	27,569	$	62,973

The following table illustrates the summarized financial information of AFOy:

		December 31, 2023		December 31, 2022
Current assets	$	13,595	$	101,996
Non-current assets		380,786		263,796
Current liabilities		11,898		4,264
Non-current liabilities		606,979		527,717
Loss for the period		56,264		128,517