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Firestone Ventures Inc. — Management Reports 2025
Feb 28, 2025
43804_rns_2025-02-28_da5fd9ce-53af-4cb5-b518-f618296f2fc9.pdf
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FIRESTONE
VENTURES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
1
FIRESTONE VENTURES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
1.0 INTRODUCTION
The following Management’s Discussion and Analysis (“MD&A”) is Management’s review of the financial condition and results of operations for the nine months ended December 31, 2024 (the “Reporting Period”) of Firestone Ventures Inc. (“Firestone” or the “Company”). This MD&A is prepared as of February 27, 2025, unless otherwise indicated and should be read in conjunction with the condensed consolidated interim financial statements for the nine months ended December 31, 2024 and the notes related thereto (“Interim Financial Statements”), and the annual consolidated financial statements for the year ended March 31, 2024, and the notes related thereto (“Annual Financial Statements”), both of which have been prepared in accordance with International Financial Reporting Standards (“IFRS”). All amounts have been expressed in Canadian Dollars unless otherwise indicated. Additional information relating to the Company can be found on SEDAR at www.sedar.com.
2.0 CAUTIONARY NOTE – “FORWARD-LOOKING INFORMATION”
This MD&A contains “forward-looking information” under applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking information, including any information as to the Company’s strategy, plans, or future financial or operating performance. Forward-looking statements are characterized by words such as “plan,” “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions, assumptions, and estimates of management considered reasonable at the date the statements are made and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the Company’s expectations in connection with the expected exploration on its projects, potential development and expansion plans on the Company’s projects, the impact of general business and economic conditions, global liquidity, inflation, inability to raise additional funds as may be required through debt or equity markets, fluctuating metal prices (such as those of zinc, lead, copper and silver, currency exchange rates (such as the Canadian Dollar (“$”) versus the United States Dollar (“USD”)), possible variations in metal grade encountered in exploration, changes in accounting policies, risks related to non-core project disposition, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development time frames, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labor and other consumables contributing to higher costs and general risks of the mining industry, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, if any, success of exploration activities, permitting time lines, government regulation and the risk of government expropriation of exploration properties, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of labor disputes and/or shortages, as well as those risk factors discussed or referred to herein. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or Management’s
FIRESTONE VENEUREE INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
estimates, assumptions, or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.
Examples of such forward-looking information in this document include, but are not limited to statements with respect to the following, each of which is subject to significant risks and uncertainties and is based on a number of assumptions that may prove to be incorrect:
- Our intention to raise additional funds to finance corporate and exploration expenditures. See Section 11.0 – Liquidity, Capital Management, and Going Concern
- The discussions of future plans including identifying and securing a new project of merit.
3.0 REPORT DATED: February 27, 2025
4.0 CORPORATE INFORMATION
Corporate Office
8 King St East, Suite 1800,
Toronto, ON, M5C 1B5
Tel: (416) 583-1646
Email: [email protected] and website: www.firestoneventures.com
The Company's registered office is located at Suite 1250, 639 – 5th Ave. S.W., Calgary, Alberta, T2P 0M9, Canada.
Directors, Management and Advisors
Dr. Keith Barron – Chairman, President & CEO, Director
Donna McLean – Chief Financial Officer and Corporate Secretary
Warren Boyd – Independent Director
Dr. Scott Morrison – Independent Director
5.0 DESCRIPTION OF BUSINESS
Firestone was incorporated on May 25, 1987, under the name "Gold Torch Resources Ltd." It has undergone several name changes with the current name having taken effect on December 6, 1999. Firestone is a reporting issuer in British Columbia and Alberta and trades on the TSX Venture Exchange NEX Board ("TSX-V") ("NEX") under the symbol FV.H and the Frankfurt Stock Exchange under the symbol F5V.
FIRESTONE
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
Nature of Operations
Firestone is a junior mineral exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests with a focus on precious and base metals.
Management continues to examine and evaluate other potential prospects as industry conditions are creating opportunities for companies such as Firestone to expand their asset base.
6.0 SELECTED FINANCIAL INFORMATION
| As at | December 31, 2024 | March 31, 2024 |
|---|---|---|
| Cash | $413,455 | $458,089 |
| Total assets | 424,125 | 468,800 |
| Total liabilities | 688,595 | 701,079 |
| Working capital (deficiency) | (264,470) | (232,279) |
| Deficit | $(24,697,843) | $(24,665,652) |
| Nine months ended December 31, | ||
| --- | --- | --- |
| 2024 | 2023 | |
| General and administrative expenses | $54,860 | $102,812 |
| Foreign exchange (gain) loss | (22,669) | 12,399 |
| Net loss and comprehensive loss | $32,191 | $115,211 |
| Basic and diluted loss per share | $0.00 | $0.00 |
| Three months ended December 31, | ||
| --- | --- | --- |
| 2024 | 2023 | |
| General and administrative expenses | $22,069 | $72,598 |
| Foreign exchange (gain) loss | (23,139) | 9,961 |
| Net (income) loss and comprehensive (income) loss | $(1,070) | $82,559 |
| Basic and diluted loss per share | $0.00 | $0.00 |
FIRESTONE VENEURES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
7.0 OVERALL PERFORMANCE - Financial position, operating results, and cash flows
7.1.1 Financial Position
As an exploration company, Firestone does not generate revenue. At December 31, 2024, the Company had accumulated losses of $24,697,843 (March 31, 2024 – $24,665,652) and will continue to incur losses until achieving commercial production if its exploration program is successful in delineating a commercially viable ore reserve.
At December 31, 2024, the Company had cash of $413,455 (March 31, 2024 - $458,089) and liabilities of: accounts payables and accrued liabilities of $48,773 (March 31, 2024 - $54,477), due to related parties of $nil (March 31, 2024 - $6,780) and promissory notes of $639,822 (March 31, 2024 - $639,822).
Historically, an officer/director (the "Lender") assisted the Company with short-term advances to meet the Company's ongoing financial obligations. During the nine months ended December 31, 2024, the Company had sufficient to pay the ongoing corporate costs. In the current period, there was no change to share capital.
7.1.2 Operating Results and Financial Performance for the nine months ended December 31, 2024 and 2023 ("Q3")
Cash on hand decreased in Q3 from year-end March 2024, from $458,089 to $413,455. Cash was used to meet the ongoing corporate costs detailed on the statement of loss. Accounts receivable are principally the refunds expected for harmonized sales tax, for prior periods. Payables are incurred in the normal course and generally paid within 30 days. With adequate cash on hand to meet the financial obligations of the Company, no cash calls to the Lender were necessary during Q3 in either 2024 or 2023. As the bulk of the Company's cash remains in USD, any movement in the US dollar results in unrealized gains or losses being recorded for the reporting period.
7.1.3 General and Administrative Expense ("G&A")
For the nine months ended December 31, 2024 (Q3/25) versus December 31, 2023 (Q3/24):
Management fees remained constant year-over-year. The higher professional and administrative fees and lower office and insurance costs in the 2023 reporting period resulted primarily from the timing of annual regulatory costs, audit fees, and insurance premiums. These lagging costs generally smooth out over the balance of the fiscal year. There were no stock option grants in Q3 in either year.
Public company costs such as regulatory fees and monthly transfer agent fees are fixed, however, Management continues to conserve cash wherever possible, while the Company endeavors to remain compliant with all regulatory and project maintenance and reporting requirements.
7.1.4 Exploration Expenses ("E&E")
There were no E&E expenditures incurred during Q3/25 and Q3/24, however, Management continues to source out and evaluate prospective projects of merit.
FIRESTONE
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
7.1.5. Cash Flows and Financing Activities
At December 31, 2024, the Lender is owed $639,822 (March 31, 2024 - $639,822) (the "Indebtedness"). The Indebtedness is non-interest-bearing and due on demand. Attracting new capital continues to be a challenge for the Company but Management believes this is achievable with the right project.
8.0 QUARTERLY RESULTS
While the costs of maintaining Firestone as a public company are primarily fixed in nature, (e.g., tariffs for annual Exchange listing, SEDAR fees and transfer agent fees are outside the control of Management, the Company continues to conserve cash wherever possible and negotiate consulting and other fees where discretionary.
The following summary of quarterly results is derived from the Interim Financial Statements prepared by Management:
| F2025 | F2024 | F2023 | ||||||
|---|---|---|---|---|---|---|---|---|
| Dec. | Sept. | June | Mar. | Dec. | Sept. | June | Mar. | |
| G&A expenses, other than share-based compensation | $22,069 | $16,313 | $16,478 | $18,412 | $31,307 | $12,580 | $17,634 | $(5,323) |
| Share-based compensation exp. Foreign exchange (gain) loss | — | — | — | — | 41,291 | — | — | 17,254 |
| (23,139) | 5,074 | (4,604) | (10,097) | 9,961 | 9,387 | 11,825 | 1,376 | |
| Net (income) loss and comprehensive (income) loss | (1,070) | 21,387 | 11,874 | 8,315 | 82,559 | 3,193 | 29,459 | 13,577 |
| Basic and diluted (income) loss per share | $(0.00) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
10.0 SHARE CAPITAL AND SHARE-BASED COMPENSATION
During the nine months ended December 31, 2024 and 2023, there were no share issuances. As at December 31, 2024 and 2023, there are 56,320,791 common shares issued and outstanding. There are no preference shares or warrants issued and outstanding.
10.1.1. Stock Options
The Company maintains a stock option plan (the "Plan") under which directors, officers, employees, and consultants of the Company and its affiliates are eligible to receive stock options. The maximum number of common shares reserved for issuance under the Plan is 10% of the issued shares of the Company at the time of granting the options.
There were no stock option grants during the nine months ended December 31, 2024 and 2023.
FIRESTONE VENEUREA PRESS
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
The following table summarizes the Company’s outstanding and exercisable stock options at December 31, 2024:
| Issued Number of Options | Exercisable Number of Options | Exercise Price | Expiry Date | Estimated Fair Value |
|---|---|---|---|---|
| 1,950,000 | 1,300,000 | $0.13 | November 16, 2026 | $208,764 |
| 2,000,000 | 2,000,000 | $0.05 | December 14, 2028 | $41,291 |
| 3,950,000 | 3,950,000 | $250,055 |
The weighted average contractual life remaining for stock options at December 31, 2024, is 2.93 (2023 – 3.13) years. The above stock options were not included in the computation of diluted net loss per share for the periods presented as they are anti-dilutive.
11.0 LIQUIDITY, CAPITAL MANAGEMENT AND GOING CONCERN
The Company considers its capital structure to include share capital, contributed surplus and equity, which at December 31, 2024 was in deficiency of $264,470 (March 31, 2024 – $232,279). A total of $639,822 or 93% of the Company’s current indebtedness is owed to Dr. Keith Barron, the Company’s principal shareholder (31%) who serves as Chairman and CEO.
The Company’s capital management objective is to ensure that there are adequate capital resources to fund planned exploration, sustain operations, and continue as a going concern. Fluctuations in commodity prices, along with political and economic uncertainties in many mining jurisdictions, have influenced financial markets and made it difficult to raise capital there, in order to fund exploration. See Section 22.0 – Other Risks and Uncertainties, for more information.
In the meantime, Management continues to examine current and other potential projects while considering various financing alternatives therein, including reorganizations, mergers, sales of assets, and other forms of debt and equity financing. There is no assurance that any such activity will generate funds that will be available for operations.
12.0 RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT COMPENSATION
12.1.1. Related party transactions
(i) During the nine months ended December 31, 2024, a total of $18,000 (2023 - $18,000) was charged to the Company by a company controlled by the CFO, for consulting fees recorded as management fees.
(ii) During the three months ended December 31, 2024, a total of $6,000 (2023 - $6,000) was charged to the Company by a company controlled by the CFO, for consulting fees recorded as management fees.
All amounts owed to these related parties are unsecured, non-interest-bearing and due on demand.
FIRESTONE VENEUREA, P.N.V.
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
12.1.2. Key Management Compensation
In accordance with IAS 24, Key Management personnel are those persons who have authority and responsibility for planning, directing, and controlling the activities of the Company directly or indirectly, including any directors (executive and non-executive) of the Company.
The Chief Executive Officer ("CEO") receives no cash compensation, and the cash compensation paid to the CFO is listed in table below. The directors receive no cash compensation however they and the CFO are eligible to be awarded stock options.
For the nine months ended December 31, 2024, and 2023, the following is the compensation recorded for Key Management:
| Three months ended December 31, | Nine months ended December 31, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Management consulting fees | $6,000 | $6,000 | 18,000 | $18,000 |
| Share-based compensation | — | 41,291 | — | 41,291 |
| $6,000 | $47,291 | $18,000 | $59,291 |
13.0 PROMISSORY NOTES
| Nine months ended December 31, 2024 | Year ended March 31, 2024 | |
|---|---|---|
| Balance, beginning of period | $639,822 | $639,822 |
| Cash advances | — | — |
| Balance, end of period | $639,822 | $639,822 |
For the nine months ended December 31, 2024 and 2023, the Company had sufficient cash to meet the ongoing corporate and exploration expenses of the Company.
14.0 TREND INFORMATION
There are no major trends that are expected to have a material effect on the Company's financial condition and results of operations in the near future.
15.0 OFF-BALANCE SHEET ARRANGEMENTS
The Company has no off-balance sheet arrangements, no capital lease agreements, and no long-term debt obligations.
FIRESTONE VENEUREA P.O.C.
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
16.0 PROPOSED TRANSACTIONS
As at December 31, 2024, the Company has no definitive transactions to acquire or dispose of any assets, however, Management has been actively reviewing potential property acquisitions, investment and joint venture transactions, and other opportunities.
17.0 COMMITMENTS AND CONTINGENCIES
Environmental Contingencies
The Company's exploration activities are subject to various federal, state, and municipal laws and regulations governing the protection of the environment. The Company conducts its operations so as to protect public health and the environment.
18.0 DISCLOSURE OF OUTSTANDING SHARE DATA
At February 27, 2025, Firestone has issued/granted:
- 56,320,791 common shares
- 3,950,000 stock options, with exercise prices of $0.05 - $0.13, expiring from November 16, 2026 to December 14, 2028.
There are no warrants issued.
19.0 ACCOUNTING POLICIES
See Annual Financial Statements - note 2 – Significant Accounting Policies for a detailed description of the adopted changes to certain accounting standards and policies made during the Reporting Period. These new standards and changes did not have any material impact on the Company’s Annual Financial Statements.
20.0 INCOME TAXES
See Annual Financial Statements – note 11 – Income Taxes for details of the Company’s provision for tax, tax losses, and deferred tax position.
21.0 CAPITAL AND FINANCIAL RISK MANAGEMENT
21.1.1. Capital management
The Company considers the capital that it manages to include share capital, contributed surplus and deficit, which at December 31, 2024, was a deficiency of $264,470 (March 31, 2024 - $232,279). The Company manages its capital structure and makes adjustments to it, based on the funds needed in order to support the acquisition, exploration, and development of mineral properties. Management does this in light of changes in economic conditions and the risk characteristics of the underlying assets.
FIRESTONE VENEUREA P.O.B.
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
There has been no change with respect to the overall capital risk management strategy during the nine months ended December 31, 2024 and 2023.
During the nine months ended December 31, 2024 and 2023, the Company continued to draw down on the net proceeds of the Shares Sale to meet its financial obligations. As at period end, the Company has sufficient funds to continue operating in the normal course in the near term.
See Section 5.0 - Description of Business.
21.1.2. Financial risk management
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including interest rate, foreign exchange rate, and commodity price risk). Risk management is carried out by the Company's Management team with guidance from the Audit Committee under policies approved by the Board of Directors. The Board of Directors also provides regular guidance for overall risk management.
21.1.3. Credit risk
Credit risk is the risk of an unexpected loss if a third party to a financial instrument fails to meet its contractual obligations. The Company has no significant concentration of credit risk arising from its operations. Cash is held at select Canadian and Guatemalan financial institutions, from which management believes the risk of loss to be remote.
21.1.4. Liquidity risk
Liquidity risk arises through an excess of financial obligations over financial assets at any point in time. The Company's approach to managing liquidity risk is to maintain sufficient readily available cash to continue operations and meet its financial obligations as they become due. As the Company has no producing assets and operations profitability will not occur within the next twelve months, continued operations are dependent upon its ability to maintain and/or raise adequate financing. In late 2021, the Company sold off its project of merit. Management continues to draw down on the sale proceeds to fund the Company's operations.
As at December 31, 2024, the Company had $413,455 in cash to settle $48,773 of accounts payable and accrued liabilities, $nil due to related parties and $639,822 of promissory notes (March 31, 2024 - $458,089 in cash to settle $54,477 of accounts payable and accrued liabilities, $6,780 due to related parties and $639,822 of promissory notes).
Working capital will continue to fluctuate until the Company has achieved profitable levels of operations and profitability. Depending on the Company's business strategy for the next twelve months, Management may need to raise additional funds to finance future acquisitions and corporate and exploration expenditures.
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FIRESTONE
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
21.1.5. Market risk
Market risk is the risk related to changes in the market prices, such as fluctuations in foreign exchange rates and interest rates that will affect the Company's net earnings or the value of its financial instruments.
21.1.6. Interest rate risk
Cash balances are deposited in highly accessible and low-interest bank accounts that are used for short-term working capital requirements. The Company regularly monitors compliance to its cash management policy.
i. Foreign currency risk
Certain of the Company's expenses are incurred in USD and are therefore subject to gains or losses due to fluctuations in these currencies. Management believes that the foreign exchange risk derived from currency conversions is best served by not hedging its foreign exchange risk.
At December 31, 2024 and 2023, the Company's exposure to foreign currency risk with respect to amounts denominated in USD was substantially as follows:
| USD | ||
|---|---|---|
| In Canadian $ equivalents | December 31, 2024 | March 31, 2024 |
| Cash | $397,677 | $419,562 |
| Accounts payable and accrued liabilities | — | (884) |
| Cash and net exposure | $397,677 | $418,678 |
ii. Commodity price risk
Commodity price risk is defined as the potential adverse future impact on earnings and economic value due to commodity price movements and volatility. The ability of the Company to develop its mineral properties and the future profitability of the Company is directly related to the market price of precious and non-precious metals commodities. Commodity prices have fluctuated significantly in recent years. There is no assurance that these metals will be produced in the future or that a profitable market will exist for them. At December 31, 2024, the Company was not a metals commodity producer.
iii. Sensitivity analysis
As at December 31, 2024, and 2023, both the carrying and fair value amounts of the Company's financial instruments are approximately equivalent due to their short-term nature. Based on Management's knowledge and experience of the financial markets, the Company believes that a 10% strengthening of the Canadian dollar against the USD would have decreased the net asset position of the Company as at December 31, 2024 by $39,768 (March 31, 2024 - $41,868). A 10% weakening of the Canadian dollar against the same would have had an equal but opposite effect.
FIRESTONE VENUEES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
iv. Fair value of financial instruments
The Company's financial instruments include cash, amounts receivable, accounts payable and accrued liabilities, due to related parties and promissory notes. The fair values of cash, amounts receivable, accounts payable and accrued liabilities, due to related parties and promissory notes approximate their carrying amounts due to the short terms to maturity. The Company has no unrecognized financial instruments or derivative financial instruments.
It is Management's opinion that the Company is not exposed to other significant market risks arising from its financial instruments.
See Annual Financial Statements - note 2(f) – Financial Instruments.
22.0 OTHER RISKS AND UNCERTAINTIES
The success of Firestone's business is subject to a number of factors including, but not limited to, those risks normally encountered by junior resource exploration companies such as exploration uncertainty, operating hazards, more onerous environmental regulation, competition with companies having greater resources, fluctuations in the price and demand for minerals, fluctuations in exchange rates and lack of operating cash flow. Firestone's ongoing ability to finance corporate and exploration costs will depend on, amongst other things, the viability of equity markets.
An investment in the common shares of the Company is speculative in nature and involves a high degree of risk.
Exploration, Development and Operating Risk
Mineral exploration involves many risks, which even a combination of experience, knowledge, and careful evaluation may not be able to overcome. Operations in which the Company has a direct or indirect interest will be subject to all the hazards and risks normally incidental to exploration and development, any of which could result in work stoppages, damage to the property, and possible environmental damage. Currently Firestone does not have a mineral property interest with a known body of commercially viable ore. Mining involves a high degree of risk and few properties that are explored are ultimately developed into producing mines. There is no assurance that any of Firestone's mineral exploration activities will result in discoveries of commercially viable ore bodies. If operating in a foreign jurisdiction, foreign currency fluctuations may also adversely affect the Company's financial position and operating results.
Management attempts to mitigate risks associated with exploration and mining and minimize their effect on the Company's financial performance, but there is no guarantee that the Company will be operationally successful.
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FIRESTONE VENEUREA INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
NINE MONTHS ENDED DECEMBER 31, 2024
Title
Property title may be subject to unregistered prior agreements and non-compliance with regulatory requirements.
Although the Company takes steps to verify title to the properties on which it is conducting exploration, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the title to the permitted properties.
Environmental Matters
The Company’s mining and exploration activities are subject to various federal, state, and international laws and regulations governing the protection of the environment.
The Company believes its operations are materially in compliance with applicable laws and regulations. The Company has arranged for the deposit of a guarantee to ensure adequate funding to meet any future expenditure to comply with such laws and regulations. The amount that will need to be paid from this deposit, and the timing of any such payment, is unknown at this time.
Foreign Country Risk
If the future property interests of the Company should be located outside of Canada, Management is aware of the potential risk of foreign investment, including increases in taxes and royalties, renegotiation of permits and currency exchange fluctuations.
The Company would mitigate foreign country risk by keeping apprised of the local economic policies and political climate and would rely on certain professional advisors, including technical and financial consultants, to inform Management of any proposed change to the laws and regulations that could significantly impact the financial results of the Company.
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