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Silver X Mining Corp. Interim / Quarterly Report 2025
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Interim / Quarterly Report
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SILVER X MINING CORP.
CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 2025
(Unaudited – Prepared by Management)
Expressed in US Dollars
NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
In accordance with National Instrument 51-102 of the Canadian Securities Administrators, the Company discloses that its external auditors have not reviewed the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025. These financial statements have been prepared by management and approved by the Audit Committee and the Board of Directors of the Company.
SILVER X MINING CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Unaudited – Prepared by Management)
(Expressed in US Dollars)
| Notes | March 31, 2025 | December 31, 2024 | |
|---|---|---|---|
| ASSETS | |||
| Current assets | |||
| Cash | $ | 1,403,963 | $ 784,429 |
| Trade and other receivables | 3 | 8,795,680 | 6,117,393 |
| Prepaid expenses and deposits | 428,720 | 220,584 | |
| Inventory | 4 | 627,836 | 495,701 |
| 11,256,199 | 7,618,107 | ||
| Non-current assets | |||
| Other receivables – non current | 3 | 1,309,210 | 1,317,072 |
| Right-of-use- assets | 7 | 18,335 | 24,447 |
| Property and equipment | 6 | 7,061,916 | 7,232,667 |
| Mineral Property | 8 | 38,895,806 | 37,603,031 |
| 47,285,267 | 46,177,217 | ||
| TOTAL ASSETS | $ | 58,541,466 | $ 53,795,324 |
| LIABILITIES and SHAREHOLDERS' EQUITY | |||
| Current liabilities | |||
| Accounts payable and accrued liabilities | 9 | $ 22,292,826 | $ 19,127,913 |
| Lease obligation | 7 | 180,880 | 186,506 |
| Debenture | 10 | 1,960,274 | 2,270,971 |
| 24,433,980 | 21,585,390 | ||
| Non-current liabilities | |||
| Long term payables | 9 | 286,004 | 277,204 |
| Long term debentures | 10 | 700,000 | 700,000 |
| Deferred income tax liability | 9,877,473 | 9,951,737 | |
| Asset retirement obligation | 11 | 2,393,200 | 2,378,647 |
| Total liabilities | 37,690,657 | 34,892,978 | |
| Shareholders' equity | |||
| Share capital | 12 | 76,313,213 | 74,925,340 |
| Accumulated deficit | (66,872,441) | (66,541,740) | |
| Reserves | 11,410,037 | 10,518,746 | |
| Total shareholders' equity | 20,850,809 | 18,902,346 | |
| TOTAL LIABILITIES and SHAREHOLDERS' EQUITY | $ | 58,541,466 | $ 53,795,324 |
Nature of operations and going concern (notes 1 & 2)
APPROVED ON BEHALF OF THE BOARD OF DIRECTORS ON MAY 15, 2025:
"Francis Johnstone" Director "Darryl Cardey" Director
See accompanying notes to the condensed consolidated interim financial statements
SILVER X MINING CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME (LOSS)
AND COMPREHENSIVE LOSS
(Unaudited – Prepared by Management)
| Notes | For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | |
|---|---|---|---|
| OPERATING REVENUES | $ 5,266,158 | $ 4,779,313 | |
| COST OF SALES | |||
| Mining and processing | $ (4,261,670) | $ (3,618,824) | |
| Amortization | (218,158) | (1,154,386) | |
| (4,479,828) | (4,773,210) | ||
| Operating income | $ 786,330 | $ 6,103 | |
| EXPLORATION EXPENDITURES | 5 | $ (16,089) | $ (55,753) |
| GENERAL AND ADMINISTRATIVE EXPENSES | $ (667,564) | $ (744,249) | |
| Income (loss) before other items | 102,677 | (793,899) | |
| OTHER ITEMS | |||
| Finance cost, net | $ (165,208) | $ (63,948) | |
| Foreign exchange gain (loss) | 82,615 | (62,443) | |
| Net income (loss) before tax | 20,084 | (920,290) | |
| Income tax expense | $ (350,785) | $ (319,000) | |
| Net loss | (330,701) | (1,239,290) | |
| Loss on translation of foreign operations | 239 | 108,167 | |
| Net comprehensive loss | $ (330,462) | $ (1,131,123) | |
| Loss per share, basic and diluted | $ (0.00) | $ (0.01) | |
| Weighted average number of common shares outstanding | 206,004,656 | 166,580,777 |
See accompanying notes to the condensed consolidated interim financial statements.
SILVER X MINING CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY)
(Unaudited – Prepared by Management)
(Expressed in US Dollars)
| Notes | Number of Common shares | Share capital | Other Equity Reserves | Accumulated Other Comprehensive Income | Accumulated Deficit | Total | ||
|---|---|---|---|---|---|---|---|---|
| Share-based payments | Share purchase warrants | |||||||
| Balance, December 31, 2023 | 166,580,777 | $ 70,828,276 | $ 5,549,736 | $ 1,725,164 | $ 2,694,056 | $(62,090,518) | $ 18,706,714 | |
| Net loss | - | - | - | - | - | (1,239,290) | (1,239,290) | |
| Gain on translation of foreign operations | - | - | - | - | 108,167 | - | 108,167 | |
| Share-based payments | 12 | - | - | 61,691 | - | - | - | 61,691 |
| Balance, March 31, 2024 | 166,580,777 | $ 70,828,276 | $ 5,611,427 | $ 1,725,164 | $ 2,802,223 | $(63,329,808) | $ 17,637,282 | |
| Balance, December 31, 2024 | 201,887,009 | $ 74,925,340 | $ 5,649,780 | $ 2,490,421 | $ 2,378,545 | $(66,541,740) | $ 18,902,346 | |
| Net loss | - | - | - | - | - | (330,701) | (330,701) | |
| Private Placement, net | 12 | 20,588,235 | 1,387,873 | - | 802,842 | - | - | 2,190,715 |
| Gain on translation of foreign operations | - | - | - | - | 239 | - | 239 | |
| Share-based payments | 12 | - | - | 23,411 | 64,799 | - | - | 88,210 |
| Balance, March 31, 2025 | 222,475,244 | $ 76,313,213 | $ 5,673,191 | $ 3,358,062 | $ 2,378,784 | $(66,872,441) | $ 20,850,809 |
See accompanying notes to the condensed consolidated interim financial statements.
SILVER X MINING CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW
(Unaudited – Prepared by Management)
(Expressed in US Dollars)
| For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | |
|---|---|---|
| CASH PROVIDED BY (USED IN): | ||
| OPERATING ACTIVITIES | ||
| Net loss | $ (330,701) | $ (1,239,290) |
| Items not affecting cash: | ||
| Accretion and interest | 21,425 | 31,770 |
| Amortization | 218,158 | 1,154,386 |
| Current income tax expense | 425,048 | - |
| Deferred income tax expense (recovery) | (74,264) | 319,000 |
| Share-based payments | 88,210 | 61,691 |
| 347,876 | 327,557 | |
| Changes in non-cash working capital items: | ||
| Other receivables and prepaids | (2,878,561) | (1,182,324) |
| Accounts payable and accrued liabilities | 2,748,665 | 1,871,036 |
| Inventory | (132,135) | 97,836 |
| Net cash inflow from operating activities | 85,845 | 1,114,105 |
| FINANCING ACTIVITIES | ||
| Proceeds (net of share issuance cost) from private placement | 2,190,715 | - |
| Lease payments | (6,450) | (80,871) |
| Net repayments from debenture | (310,697) | (175,288) |
| Net cash inflow (outflow) from financing activities | 1,873,568 | (256,159) |
| INVESTING ACTIVITIES | ||
| Mineral property | $ (1,152,047) | $ (636,264) |
| Purchase of property, plant, and equipment | (193,776) | (306,317) |
| Net cash outflow from investing activities | (1,345,823) | (942,581) |
| Foreign exchange impact on cash | 5,944 | (104,850) |
| Net change in cash | 619,534 | (189,485) |
| Cash, beginning of year | 784,429 | 484,902 |
| Cash, end of period | $ 1,403,963 | $ 295,417 |
See accompanying notes to the condensed consolidated interim financial statements
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
1. CORPORATE INFORMATION
Silver X Mining Corp. (the "Company") was incorporated under the Business Corporations Act of British Columbia on June 4, 2009. The Company is listed on the Toronto Stock Exchange Venture (The "TSXV") under the symbol AGX, the U.S. Over The Counter Market (The "OTCQB") under the symbol AGXPF and the Frankfurt Stock Exchange under the symbol AGX.
The Company's principal business activities are directed towards mineral production, exploration, and development of mineral properties in the Americas.
The address of the Company's corporate office and principal place of business is Suite 1012 – 1030 West Georgia Street, Vancouver, BC, V6E 2Y3.
2. BASIS OF PREPARATION
Statement of Compliance with International Financial Reporting Standards ("IFRS")
These unaudited condensed consolidated interim financial statements (the 'Financial Statements') have been prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB"). Accordingly, certain disclosures included in annual financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the IASB have been condensed or omitted and these Financial Statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2024.
Other than as stated below, these Financial Statements follow the same accounting policies and methods of applications as the most recent audited consolidated financial statements of the Company.
The Company's interim results are not necessarily indicative of its results for a full year.
The preparation of condensed consolidated financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies. The areas involving a higher degree of judgment of complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in annual audited financial statements. Certain comparative figures have been reclassified to conform to the current year's presentation.
Going Concern and Continuance of Operations
These Financial Statements have been presented on the basis that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Realization values may be substantially different from the carrying values shown and these Financial Statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. As at March 31, 2025, the Company had an accumulated deficit of $66,872,441 (December 31, 2024 - $66,541,740) since inception, and the Company's working capital deficit was $13,177,781 (December 31, 2024 – deficit $13,967,283). The Company may incur further losses in the development of its business.
The Company's ability to continue as a going concern is dependent upon its ability to obtain the necessary capital either through external financing sources or organically through the ramping up of its production to meet its obligations and repay its liabilities arising from normal business operations when they come due, which in part, depends on prevailing market conditions, commodity prices and operational success. While the Company has been successful in securing financing in the past, there is no assurance that it will be able to do so in the future.
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
2. BASIS OF PREPARATION (continued...)
Basis of Consolidation
On March 13, 2025, the Company closed its private placement offering with the placement of 20,588,235 units at a price of C$0.17 per Unit for gross proceeds of $2,429,037 (C$3,500,000). The Company paid its broker a commission of $145,034 (C$208,980), and other legal fees and disbursements of $93,289 (C$134,418).
The Financial Statements include the accounts and results of operations of the Company and its wholly owned subsidiaries listed in the following table below.
A subsidiary is an entity in which the Company has control, directly or indirectly, where control is defined as the power to govern the financial and operating policies of an enterprise to obtain benefits from its activities. All material intercompany transactions and balances have been eliminated on consolidation.
| Name of Parent | Place of Incorporation | Functional Currency | March 31, 2025, Ownership | December 31, 2024, Ownership |
|---|---|---|---|---|
| Silver X Mining Corp. | Canada | CAD | N/A - Parent | N/A - Parent |
| Name of Subsidiary | ||||
| Mines & Metals Trading (Peru) PLC | Isle of Man | USD | 100% | 100% |
| Recuperada SAC | Peru | USD | 100% | 100% |
| San Antonio Mining Peru SAC | Peru | USD | 100% | 100% |
| Mining Sense Gold Peru SAC | Peru | USD | 100% | 100% |
| Minera Tangana SAC | Peru | USD | 100% | 100% |
| Tangana Mines Peru SAC | Peru | USD | 100% | 100% |
| Corongo Exploraciones SAC | Peru | USD | 100% | 100% |
| Western Pacific Resources (U.S.) Corp. | USA | USD | 100% | 100% |
| Quilla Canada Mining Corp. | Canada | USD | 100% | 100% |
| Talla Canada Mining Corp. | Canada | USD | 100% | 100% |
| Greengold Canada Mining Corp. | Canada | USD | 100% | 100% |
| Quilla Mining SAC | Peru | USD | 100% | 100% |
| Corporacion Minera Talla SAC | Peru | USD | 100% | 100% |
| Green Gold Resources | Ecuador | USD | 100% | 100% |
| Colorado Silver Mines LLC | USA | USD | 100% | 100% |
| Mina Nueva Esperanza S.A.C. | Peru | USD | 100% | NA |
| Minera Nueva Blenda Rubia S.A.C. | Peru | USD | 100% | NA |
The functional currency of each entity is measured using the currency of the primary economic environment in which that entity operates. The condensed consolidated financial statements are presented in United States dollar, which is the Company's reporting currency. The functional currency of the Company and its subsidiaries are noted in the table above.
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
2. BASIS OF PREPARATION (continued...)
Change in functional currency.
In light of the Company achieving commercial production in March of 2024, the Company reassessed its functional currency and concluded the functional currency of its Peruvian entities is USD. The change in functional currency was effective as of January 1, 2024. Prior to January 1, 2024, the functional currency of the Peruvian companies was the Peruvian Sol.
The change in functional currency is due to the increased exposure to the US dollar as a result of the growth in international operations.
3. TRADE AND OTHER RECEIVABLES
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Trade receivable | $ 830,526 | $ 432,861 |
| Supplier advances and other receivables | 3,550,148 | 1,426,993 |
| Reclamation bond | 1,309,210 | 1,317,072 |
| Tax receivables – Peru (IGV) | 4,371,671 | 4,222,527 |
| Tax receivables – Canada (GST) | 43,335 | 35,012 |
| $ 10,104,890 | $ 7,434,465 | |
| Non-current | (1,309,210) | (1,317,072) |
| Current | 8,795,680 | 6,117,393 |
4. INVENTORY
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Concentrate inventory | $ 245,797 | $ 144,349 |
| Stockpile inventory | 74,929 | 69,148 |
| Material and supplies | 307,110 | 282,204 |
| Current | $ 627,836 | $ 495,701 |
The Company reports no impaired concentrate, inventory stockpile, materials or supplies for the reporting period.
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
5. EXPLORATION AND EVALUATION ASSETS
a) Coriorcco & Las Antas Property, Peru
In June 2024, the Company decided not to renew the option on the Coriorcco and Las Antas project, after deciding to concentrate on more prospective exploration projects. The project was fully impaired at December 31, 2023, resulting in an impairment loss of $4,415,637. During the year ended December 31, 2024, the Company wrote-off $126,602 to Exploration and Evaluation expenses related to the Coriorcco property.
During the three months ended March 31, 2025, the Company has not capitalized any exploration expenditures incurred in Las Antas property.
b) Lily 19 Claims, Peru
Silver X acquired the Lily 19 claims through an earn-in agreement with Barrick Gold Corp. in Q4 2021. Under the terms of the agreement, to acquire 100% interest in the project Silver X must:
- Complete at least 3,000 m of diamond drilling in the concession
- Map and sample the surface.
- Maintain the claims in good standing.
- Make a one-time payment of $25,000 (paid)
Within four (4) years of the date of signing, or two (2) years from receiving a drilling permit for the property. Furthermore, Barrick will retain a 2% NSR, of which 1% can be bought back for $2,000,000.
EXPLORATION EXPENDITURES
| For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | |
|---|---|---|
| Geological consulting | $ 15,915 | $ 17,040 |
| Concession payments | 174 | 23,728 |
| Other | - | 14,985 |
| $ 16,089 | $ 55,753 |
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
6. PROPERTY AND EQUIPMENT
| COST | As at December 31, 2024 | Purchases and reclassifications | Foreign exchange impact | As at March 31, 2025 |
|---|---|---|---|---|
| Building and facilities | $ 418,916 | $ 17,993 | $ (12,074) | $ 424,835 |
| Machinery and equipment | 2,002,481 | 14,097 | (55,730) | 1,960,848 |
| Vehicles | 16,670 | - | (461) | 16,210 |
| Furniture and fixtures | 45,997 | - | (1,271) | 44,726 |
| Other equipment | 516,711 | 15,568 | (14,710) | 517,569 |
| Plant | 6,861,097 | 145,285 | (193,627) | 6,812,756 |
| Assets under construction | 623,589 | 833 | (17,256) | 607,166 |
| $ 10,485,462 | $ 193,776 | $ (295,129) | $ 10,384,109 | |
| ACCUMULATED DEPRECIATION | As at December 31, 2024 | Depreciation | Foreign exchange impact | As at March 31, 2025 |
| --- | --- | --- | --- | --- |
| Building and facilities | $ 39,608 | $ 4,867 | $ (1,229) | $ 43,246 |
| Machinery and equipment | 1,069,903 | 49,965 | (30,948) | 1,088,920 |
| Vehicles | 13,139 | 831 | (386) | 13,584 |
| Furniture and fixtures | 17,389 | 1,468 | (521) | 18,336 |
| Other equipment | 256,514 | 28,159 | (7,867) | 276,805 |
| Plant | 1,856,242 | 78,529 | (53,469) | 1,881,302 |
| $ 3,252,795 | $ 163,819 | $ (94,421) | $ 3,322,193 | |
| NET CARRYING VALUE | As at March 31, 2025 | As at December 31, 2024 | ||
| --- | --- | --- | ||
| Building and facilities | $ 381,588 | $ 379,307 | ||
| Machinery and equipment | 871,928 | 932,578 | ||
| Vehicles | 2,626 | 3,531 | ||
| Furniture and fixtures | 26,391 | 28,609 | ||
| Other equipment | 240,764 | 260,197 | ||
| Plant | 4,931,453 | 5,004,855 | ||
| Asset under construction | 607,166 | 623,589 | ||
| $ 7,061,916 | $ 7,232,667 |
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
7. LEASES
The Company's leases relate to equipment and offices in Peru. Depreciation of right-to-use assets is calculated using the straight-line method over the remaining lease term. During the year ended December 31, 2024, the Company cancelled a lease agreement for office space previously recognized under IFRS 16. This cancellation led to the derecognition of the right-of-use asset with a net book value of $125,040. Additionally, the lease liability of $166,270 was derecognized, resulting in a gain of $41,230, which was recognized in the statement of profit or loss under 'Other Income'.
On January 10, 2024, the Company entered into a new lease agreement for office space with a two-year term and monthly payment of $2,150, using an implicit interest rate of 15% per annum. The present value of the lease payments resulted in a right-of-use asset and lease liability of $48,896.
Right of use assets associated with the Company's lease obligation as at March 31, 2025:
a) Right-of-Use Asset
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Opening balance | $ 24,447 | $ 309,434 |
| Additions during the period | - | 48,896 |
| Written off during the period | - | (125,040) |
| Less: depreciation | (6,112) | (208,843) |
| $ 18,335 | $ 24,447 |
b) Lease Obligations
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Opening balance | $ 186,506 | $ 320,891 |
| Additions during the period | - | 48,896 |
| Written off during the period | - | (166,270) |
| Plus: interest | 824 | 12,789 |
| Less: lease payments | (6,450) | (29,800) |
| $ 180,880 | $ 186,506 |
Discounted lease obligation associated with the Company's lease obligation as at March 31, 2025:
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Current | $ 180,880 | $ 186,506 |
| Long term | - | - |
| Total discounted lease obligation | $ 180,880 | $ 186,506 |
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
7. LEASES (continued...)
Undiscounted lease obligation associated with the Company's lease obligation as at March 31, 2025:
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Within a year | $ 182,035 | $ 188,485 |
| Later than a year | - | - |
| Total undiscounted lease obligation | $ 182,035 | $ 188,485 |
8. MINERAL PROPERTY
| As at December 31, 2023 | $ 37,001,484 |
|---|---|
| Property additions | 3,499,189 |
| Depreciation and amortization | (2,519,024) |
| Write-off during the period | (126,602) |
| Foreign exchange | (252,016) |
| As at December 31, 2024 | $ 37,603,031 |
| Property additions | 1,152,047 |
| Depreciation and amortization | (35,105) |
| Foreign exchange | 175,833 |
| As at March 31, 2025 | $ 38,895,806 |
During the period ended March 31, 2025, the Company incurred $1,152,047 in further developing the Nueva Recuperada Project. During the year ended December 31, 2024, the Company wrote off $126,602 to Exploration and Evaluation expenses related to the Coriorcco property that was fully impaired in the year ended December 31, 2023.
On November 28, 2023, the Company entered into an agreement amending the terms of the original royalty agreement with Maverix Metals Inc., a subsidiary of Triple Flag Precious Metals Corp. ("Triple Flag"), to expand the royalty to cover the entire Tangana Mining Unit (the "Mine") in the Nueva Recuperada Mining District in Central Peru.
- Royalty Restructuring: The prior 3.0% NSR royalty, which covered only a portion of the Mine, is replaced by a more comprehensive 3.0% NSR royalty that spans the entire Mine.
- Purchase Agreement: Triple Flag paid an aggregate consideration of US$2,420,000 comprising of US$1,670,000 of cash and an offset of amounts to be paid under the royalty agreement through the end of 2023. The US $1,670,000 cash was received on November 28, 2023.
- Strategic Rights Secured: Triple Flag has been granted both a Right of First Refusal and a Right of First Offer over future royalty or stream-like financings.
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Trade payable | $ 10,394,462 | $ 9,565,001 |
| Accrued liabilities | 12,184,368 | 9,840,116 |
| $ 22,578,830 | $ 20,260,992 | |
| Non-current | (286,004) | (717,996) |
| Current | 22,292,826 | 19,542,996 |
10. DEBENTURES
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Trafigura Peru S.A.C. (i) | $ 2,162,898 | $ 2,473,850 |
| Blanco SAFI S.A.C (ii) | 276,317 | 276,317 |
| Herr - Glass (iii) | 212,764 | 212,764 |
| Other | 8,295 | 8,040 |
| $ 2,660,274 | $ 2,970,971 | |
| Non-current (i) | 700,000 | 700,000 |
| Current | 1,960,274 | 2,270,971 |
i) On December 20, 2024, the Company entered into a loan facility agreement for $1,400,000 to be repaid in 25 months from January 2025 to December 2026, with December 2024 being considered a grace period. On March 5, 2025, the Company, in relation to the loan facility agreement, issue a loan bonus of 1,500,000 common share purchase warrants to an affiliate of Trafigura, Urion Holdings (Malta) Limited. Under the agreement, monthly payments began in January 2025 and will consist of 24 installments of $58,333.33. The loan bears interest at 6.0% + SOFR (3M) per year. The remaining balance is related to a short-term line of credit with the lender. The line of credit bears interest at 5.5% + Libor.
ii) On June 14, 2024, both parties agreed to restructure the debt, including any unpaid interest. The debt will be repaid in 10 equal monthly installments of $34,506, starting from July 19, 2024, to April 18, 2025, with the interest rate increased from 1.5% to 2.0%.
iii) The loan bears an interest of 5% per annum with a private lender and is due as at December 9, 2022. As at March 31, 2025, the loan is still outstanding, the Company is still under negotiations with the lender to extend the maturity date and agree upon a revised repayment schedule.
14
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
11. ASSET RETIREMENT OBLIGATION
The Company includes a provision on its Statement of Financial Position for the future cost of remediation of the mineral property. The carrying balance represents the present value of the remediation cost. Remediation is expected to begin in 2030 and end during 2039. The provision is determined based on a third-party plan commissioned by the Company and approved by the Peruvian Directorate General of Mining Environmental Affairs of the Ministry of Energy and Mines.
The undiscounted provision for environmental rehabilitation is estimated at $2.6M as at March 31, 2025 (December 31, 2024: $2.6M), over a period of 6-15 years, using an inflation rate of 3.7% (December 31, 2024 – 3.7%) and discounted using a risk-free rate of 5.6% to 6.8% (December 31, 2024: 5.6% to 6.8%) per annum. The Company has a reclamation bond in place for $1.3M, which matures on January 14, 2026.
| Total | |
|---|---|
| As at December 31, 2023 | $ 2,217,972 |
| Accretion | 82,404 |
| Foreign exchange and other | 78,271 |
| As at December 31, 2024 | $ 2,378,647 |
| Accretion | 20,601 |
| Foreign exchange and other | (6,048) |
| As at March 31, 2025 | $ 2,393,200 |
12. SHARE CAPITAL AND RESERVES
The Company is authorized to issue an unlimited number of common shares without par value.
During the three months ended March 31, 2025
a) On March 5, 2025, the Company, in relation to the loan facility agreement, issue a loan bonus of 1,500,000 common share purchase warrants to an affiliate of Trafigura, Urion Holdings (Malta) Limited. The Warrants are subject to a hold period, under Canadian securities laws, expiring four months and one day from the date of issuance, exercisable for an equivalent number of common shares for a period of 25 months at a 25% premium to the 20-day VWAP of Silver X's shares on the TSX.V as of the day before announcing the signing date. The fair value of the warrants issued was $64,718 (C$93,000) which was expensed as part of share-based compensation.
b) On March 13, 2025, the Company closed its private placement offering with the placement of 20,588,235 units (the "Units") at a price of C$0.17 per Unit for gross proceeds of $2,429,040 (C$3,500,000). Each Unit consists of one common share and one Share purchase warrant entitling the holder to purchase one share of the Company at a price of C$0.25 per share for a period of 36 months from the date of closing of the Private Placement. The Company paid its broker a commission of $145,034 (C$208,980), and other legal fees and disbursements of $93,289 (C$134,418). Furthermore, the Company issued 1,229,294 broker warrants (the "Broker Warrants"). Each Broker Warrant is exercisable for one Common Share at a price of C$0.17 per Common Share at any time on or before March 13, 2028.
c) On March 31, 2025, the Company granted 450,000 restricted share units with a term of 1 year and 700,000 stock options to directors and officers of the Company, in accordance with the Company's omnibus incentive plan dated August 9, 2024. Each stock option will have an exercise price of C$0.17 and will have a term of 5 years.
15
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
12. SHARE CAPITAL AND RESERVES (continued...)
During the year ended December 31, 2024
a) On December 2, 2024, 175,000 common shares were issued in relation to the vesting of RSUs.
b) On October 24, 2024, 25,000 common shares were issued in relation to the exercise of options with an exercise price of C$0.25 for total proceeds of $4,491.
c) On October 30, 2024, 66,500 common shares were issued in relation to the exercise of warrants with an exercise price of C$0.30 for total proceeds of $14,336.
d) On August 20, 2024, the Company issued 1,261,956 common shares at a price of C$0.23 per share, resulting in a share-based payment of $213,355. These shares were issued to a former officer as part of a severance agreement. The Company incurred share issuance costs amounting to $1,802.
e) On April 4, 2024, the Company closed the first tranche of a non-brokered private placement offering (the "Private Placement") with the placement of 6,156,199 units (the "Units") at a price of C$0.18 per Unit for gross proceeds of $808,750 (C$1,108,116). On April 12, 2024, the Company closed the second and final tranche of the Private Placement with the placement of 21,621,577 units at a price of C$0.18 per Unit for gross proceeds of $2,840,462 (C$3,891,884). In total, the Company placed 27,777,776 units for aggregate proceeds of $3,562,255, net of $86,956 share issuance cost.
Each Unit consists of one common share (a "Share") and one half of one Share purchase warrant (a "Warrant") with each whole Warrant entitling the holder to purchase one Share of the Company at a price of C$0.30 per Share for a period of 36 months from the date of closing of the Private Placement (the "Closing Date").
Warrants
The continuity of warrants for the period are as follows:
| Number of warrants | Weighted average exercise price | |
|---|---|---|
| Outstanding warrants, December 31, 2023 | 15,478,814 | C$0.40 |
| Granted | 14,271,729 | C$0.30 |
| Exercised | (66,500) | C$0.21 |
| Expired | (6,680,919) | C$0.33 |
| Outstanding warrants, December 31, 2024 | 23,003,124 | C$0.36 |
| Granted | 23,317,529 | C$0.25 |
| Outstanding warrants, March 31, 2025 | 46,320,653 | C$0.30 |
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
12. SHARE CAPITAL AND RESERVES (continued...)
As at March 31, 2025, warrants enabling the holders to acquire common shares are as follows:
| Expiry date | Number of warrants | Weighted average remaining life in years | Weighted average exercise price |
|---|---|---|---|
| June 5, 2025 | 4,289,850 | 0.18 | C$0.45 |
| June 5, 2025 | 78,003 | 0.18 | C$0.30 |
| June 28, 2025 | 3,028,480 | 0.24 | C$0.45 |
| June 28, 2025 | 14,562 | 0.24 | C$0.30 |
| July 7, 2025 | 1,387,000 | 0.27 | C$0.45 |
| April 4, 2027 | 3,121,154 | 2.01 | C$0.30 |
| April 12, 2027 | 11,084,075 | 2.03 | C$0.30 |
| April 5, 2025 | 1,500,000 | 0.01 | C$0.25 |
| March 13, 2028 | 20,588,235 | 2.95 | C$0.25 |
| March 13, 2028 | 1,229,294 | 2.95 | C$0.17 |
| 46,320,653 | 2.05 | C$0.30 |
Options
Option Plan
The Company has a share purchase option plan ("the Plan"), which allows the Company to issue options to directors, officers, employees, and consultants of the Company. The maximum aggregate number of securities reserved for issuance is 10% of the number of common shares issued and outstanding. Options granted under the Plan may have a maximum term of ten years. Vesting restrictions may be imposed at the discretion of the directors.
Share Purchase Options
The continuity of share purchase options for the periods presented is as follows:
| Number of options | Weighted average exercise price | |
|---|---|---|
| Outstanding options, December 31, 2023 | 8,825,000 | C$ 0.46 |
| Exercised | (25,000) | C$ 0.25 |
| Forfeited | (2,875,000) | C$ 0.50 |
| Outstanding options, December 31, 2024 | 5,925,000 | C$ 0.43 |
| Granted | 700,000 | C$ 0.17 |
| Outstanding options, March 31, 2025 | 6,625,000 | C$ 0.40 |
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
12. SHARE CAPITAL AND RESERVES (continued...)
Options (continued...)
As at March 31, 2025, options enabling the holders to acquire common shares are as follows:
| Expiry date | Number of options | Number of vested options | Weighted average remaining life in years | Weighted average exercise price |
|---|---|---|---|---|
| June 24, 2025 | 150,000 | 150,000 | 0.23 | C$ 0.27 |
| November 2, 2025 | 125,000 | 125,000 | 0.59 | C$ 0.70 |
| June 21, 2026 | 2,000,000 | 2,000,000 | 1.22 | C$ 0.60 |
| August 23, 2026 | 850,000 | 850,000 | 1.40 | C$ 0.60 |
| August 9, 2027 | 800,000 | 800,000 | 2.36 | C$ 0.25 |
| November 4, 2027 | 350,000 | 350,000 | 2.60 | C$ 0.23 |
| November 30, 2026 | 250,000 | 250,000 | 1.67 | C$ 0.27 |
| November 30, 2028 | 1,400,000 | 1,400,000 | 3.67 | C$ 0.27 |
| March 31, 2030 | 700,000 | 350,000 | 5.00 | C$ 0.17 |
| 6,625,000 | 6,275,000 | 2.35 | C$ 0.40 |
The Company granted the following stock options to the Company's management, directors, and consultants. The fair value of the options was estimated on the date of grant using the Black-Scholes option pricing model, with the following assumptions:
| March 31, 2025 | November 30, 2023 | |
|---|---|---|
| Number of options granted | 700,000 | 2,050,000 |
| Vesting Provision | 12-month | 12-month |
| Expected stock price volatility | 88% | 120% |
| Expected life of options | 5.0 years | 5.0 years |
| Risk free interest rate | 4% | 4% |
| Expected dividend yield | 0% | 0% |
| Exercise price | C$0.17 | C$0.265 |
| Fair value of options | $ 46,745 | $ 319,761 |
There were no new options granted in 2024. For the three months ended March 31, 2025, the share-based compensation expense related to options was $23,411 (three months ended March 31, 2024–$50,638).
Restricted Share Units ("RSU")
The continuity of RSUs for the periods presented is as follows:
| Number of RSUs | |
|---|---|
| Outstanding RSUs, December 31, 2023 | 225,000 |
| Forfeited | (50,000) |
| Vested | (175,000) |
| Outstanding RSUs, December 31, 2024 | - |
| Granted | 450,000 |
| Outstanding RSUs, March 31, 2025 | 450,000 |
For the three months ended March 31, 2025, share-based compensation expense related to RSUs was $Nil (three months ended March 31, 2024 – $11,053).
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
13. RELATED PARTY TRANSACTIONS
The Company's related parties with transactions during the three months ended March 31, 2025, consist of directors, officers, and the following companies with common directors:
| Related party | Nature of transactions |
|---|---|
| Mysterybelle Ltd (Director) | Director fees |
| Altitude Exploraciones (Director, Officer) | Exploration and evaluation expenses |
| Vihren Management LTD. (Former Officer) | Compensation expense |
| Freddy Mayor (Former Officer) | Compensation expense |
| Catapult Consulting Corp (Former Officer) | Compensation expense and professional fees |
| Serebro Corp. (Director, Officer) | Compensation expense |
| Darryl Cardey (Officer) | Director fees |
| David Gleit (Officer) | Compensation expense |
As at March 31, 2025, the Company had $29,518 outstanding in accounts payables and accrued liabilities (December 31, 2024 – $40,470) and $120,663 outstanding in supplier advances (December 31, 2023 – $93,499) associated with related parties.
i) Key Management Compensation
Key management personnel are persons responsible for planning, directing, and controlling the activities of the Company, and include certain directors and officers. Key management compensation, including amounts discussed above, is comprised of:
| For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | |
|---|---|---|
| Compensation expense | $ 100,352 | $ 168,136 |
| Directors' fees | 22,514 | 24,679 |
| Share based payment | 23,411 | 45,888 |
| $ 146,277 | $ 238,703 |
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
14. SEGMENTED INFORMATION
The Company operates in two reportable operating segments, the exploration, development, and production of mineral properties.
| March 31, 2025 | Canada – Corporate | Peru | Total |
|---|---|---|---|
| Cash and cash equivalents | $ 1,116,632 | $ 287,331 | $ 1,403,963 |
| Inventory | - | 627,836 | 627,836 |
| Receivables | 43,335 | 8,752,345 | 8,795,680 |
| Prepaid | 428,720 | - | 428,720 |
| 1,588,687 | 9,667,512 | 11,256,199 | |
| Mineral Property | - | 38,895,806 | 38,895,806 |
| ROU Assets | - | 18,335 | 18,335 |
| Equipment | - | 7,061,916 | 7,061,916 |
| Receivable – non current | - | 1,309,210 | 1,309,210 |
| Total assets | $ 1,588,687 | $ 56,952,779 | $ 58,541,466 |
| December 31, 2024 | Canada – Corporate | Peru | Total |
| --- | --- | --- | --- |
| Cash and cash equivalents | $ 134,442 | $ 649,987 | $ 784,429 |
| Inventory | - | 495,701 | 495,701 |
| Receivables | 35,012 | 6,082,381 | 6,117,393 |
| Prepaid | 220,584 | - | 220,584 |
| 390,038 | 7,228,069 | 7,618,107 | |
| Mineral Property | - | 37,603,031 | 37,603,031 |
| ROU Assets | - | 24,447 | 24,447 |
| Equipment | - | 7,232,667 | 7,232,667 |
| Receivable – non current | - | 1,317,072 | 1,317,072 |
| Total assets | $ 390,038 | $ 53,405,286 | $ 53,795,324 |
| Canada – Corporate | Peru | Total | |
| --- | --- | --- | --- |
| Net loss – year ended March 31, 2025 | $ (946,837) | $ 616,136 | $ (330,701) |
| Net loss – year ended March 31, 2024 | $ (1,073,098) | $ (166,192) | $ (1,239,290) |
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
15. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
In common with all other businesses, the Company is exposed to risks that arise from its use of financial instruments. This note describes the Company's objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these consolidated financial statements.
General Objectives, Policies and Processes
The Board of Directors has overall responsibility for the determination of the Company's risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Company's management. The Board of Directors receives periodic reports through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Company's competitiveness and flexibility.
The Company's risk exposure and the impact on the Company's financial instruments are summarized below:
Credit Risk
Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company's credit risk is primarily attributable to its cash and other receivables. The Company has concentrate contracts to sell concentrates produced. Concentrate contracts are a common business practice in the mining industry. The terms of the concentrate contracts may require the Company to deliver concentrate that has a value greater than the payment received at the time of delivery, thereby introducing the Company to credit risk of the buyers of concentrates. Should any of these counterparties not honour the purchase arrangements, or should any of them become insolvent, the Company may incur losses for products already shipped and be forced to sell its concentrates on the spot market or it may not have a market for its concentrates and therefore its future operating results may be materially adversely impacted. The majority of the Company's concentrate is sold to one concentrate buyer. The Company limits exposure to credit risk by maintaining its cash with large financial institutions and by monitoring the risk associated with its concentrate sales. The Company does not have cash invested in asset-based commercial paper.
Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its obligations as they become due. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating any investing and financing activities. Management and the Board of Directors are actively involved in the review, planning and approval of significant expenditures and commitments. The Company is exposed to liquidity risk.
Commodity Price Risk
Market risk is the risk that the fair value of, or future cash flows from, the Company's financial instruments will significantly fluctuate due to changes in market prices. The value of financial instruments can be affected by changes in interest rates, foreign currency rates and other market prices. Management closely monitors commodity prices, individual equity movements and the stock market to determine the appropriate course of action to be taken by the Company.
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
15. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued...)
Foreign Currency Risk
The Company's operations in Canada and Peru create exposure to foreign currency fluctuation. Some of the Company's operating expenditures are incurred in Peruvian SOL or Canadian Dollar, and the fluctuation of foreign currencies with the US dollar will have an impact upon the profitability of the Company and may also affect the value of the Company's financial assets and liabilities. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risks.
The Company's financial assets and liabilities in various currencies as at March 31, 2025, are set out in the following table:
| March 31, 2025 | Canadian Dollar | US Dollar | Peruvian SOL | Total (USD) |
|---|---|---|---|---|
| Cash and cash equivalents | $ 1,523 | $ 1,344,143 | $ 58,297 | $ 1,403,963 |
| Receivables | 43,335 | 8,047,149 | 705,196 | 8,795,680 |
| 44,859 | 9,391,291 | 763,493 | 10,199,643 | |
| Accounts payables and accruals | 392,639 | (14,261,461) | (8,424,005) | (22,292,826) |
| Lease | - | (180,880) | - | (180,880) |
| Debenture | - | (2,652,009) | (8,265) | (2,660,274) |
| Net asset (liabilities) | $ 437,498 | $ (7,703,058) | $ (7,668,777) | $ (14,934,337) |
The Company's financial assets and liabilities in various currencies as at December 31, 2024, are set out in the following table:
| December 31, 2024 | Canadian Dollar | US Dollar | Peruvian SOL | Total (USD) |
|---|---|---|---|---|
| Cash and cash equivalents | $ 1,522 | $ 782,907 | $ 0 | $ 784,429 |
| Receivables | 35,012 | 5,621,415 | 460,966 | 6,117,393 |
| 36,534 | 6,404,322 | 460,966 | 6,901,822 | |
| Accounts payables and accruals | (327,538) | (11,476,013) | (7,324,361) | (19,127,913) |
| Lease | - | (186,506) | - | (186,506) |
| Debenture | - | (2,962,903) | (8,068) | (2,970,971) |
| Net asset (liabilities) | $ (291,005) | $ (8,221,100) | $ (6,871,463) | $ (15,383,568) |
The Company's reported results will be affected by fluctuations in the Canadian dollar to US Dollar and Peruvian SOL to US Dollar exchange rate. As at March 31, 2025, a 10% depreciation of the Canadian Dollar relative to the US Dollars would have decreased net financial liabilities by approximately $49,000 (December 31, 2024 - $32,000). A 10% appreciation of the Canadian Dollar relative to the US Dollar would have had the equal but opposite effect. As at March 31, 2025, a 10% depreciation of the Peruvian SOL relative to the US Dollars would have decreased net financial liabilities by approximately $767,000 (December 31, 2024 - $625,000). A 10% appreciation of the Peruvian SOL relative to the US Dollar would have had the equal but opposite effect.
22
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
15. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued...)
Interest Rate Risk
Interest rate risk consists of two components:
i) To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.
ii) To the extent that changes in prevailing market rates differ from the interest rate in the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.
As at March 31, 2025, a 1% change in market interest rates would result in no material change in value of the assets or liabilities of the Company.
Other Price Risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk, currency risk, or equity price risk. The Company is not exposed to any other price risk.
Determination of Fair Value
When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
The carrying amounts for cash, receivables, accounts payable and accrued liabilities and due to related parties’ approximate fair values due to their short-term nature. Due to the use of subjective judgments and uncertainties in the determination of fair values these values should not be interpreted as being realizable in an immediate settlement of the financial instruments.
Fair Value Hierarchy
Financial instruments that are measured subsequent to initial recognition at fair value are grouped in Levels 1 to 3 based on the degree to which the fair value is observable:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
Level 3 – Inputs that are not based on observable market data.
Valuation techniques for receivables from provisional concentrate sales:
A portion of the Company’s trade receivables arose from provisional concentrate sales and are valued using quoted market prices based on the forward London Metal Exchange for gold, copper, zinc and lead and the London Bullion Market Association P.M. fix for silver.
23
SILVER X MINING CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the three months ended March 31, 2025
(Expressed in US Dollars)
16. CAPITAL MANAGEMENT
The Company's objective when managing capital is to safeguard the Company's ability to continue as a going concern in order to advance its mineral properties and pursue growth opportunities. The Company defines its capital as shareholders' equity. The Company manages its capital structure and makes adjustments to it to effectively support the acquisition and exploration of mineral properties.
The properties in which the Company currently has an interest in are in exploration, development, and production stages; as such, the Company is dependent on external financing to fund its exploration and development activities. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so.
Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. The Company monitors its cash, investments, common shares, and stock options as capital. There have been no changes to the Company's approach to capital management during the three months ended March 31, 2025. The Company's investment policy is to hold cash in interest-bearing bank accounts or highly liquid short-term interest-bearing investments with maturities of one year or less and which can be liquidated at any time without penalties. The Company is not subject to externally imposed capital requirements and does not have exposure to asset-backed commercial paper or similar products.
The Company does not expect its current capital resources to be sufficient to cover its operating capital and corporate general and administrative expenditure through the next twelve months and, as such, will need to obtain additional capital resources. Actual funding requirements may vary from those previously planned due to a number of factors, including the progress of the Company's business activities and economic condition.
24