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Volta Metals Ltd. — Interim / Quarterly Report 2025
Nov 27, 2025
47702_rns_2025-11-27_d0651551-3ae5-4b9c-be4f-6e5995912188.pdf
Interim / Quarterly Report
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VOLTA METALS LTD.
Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited – Prepared by Management)
(Expressed in Canadian dollars)
VOLTA METALS LTD.
Notice of Disclosure of Non-auditor Review of the Condensed Interim Financial Statements for the three and nine months ended September 30, 2025 and 2024
Pursuant to National Instrument 51-102 Continuous Disclosure Obligations, part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the interim financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed interim financial statements of Volta Metals Ltd. for the interim periods ended September 30, 2025 and 2024 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as issued by the International Accounting Standards Board, and are the responsibility of management.
The independent auditors, Davidson & Company LLP, have not performed a review of these unaudited condensed interim financial statements.
November 27, 2025
VOLTA METALS LTD.
Condensed Interim Statements of Financial Position
(Unaudited - Expressed in Canadian dollars)
As at,
| Note | September 30, 2025 | December 31, 2024 | |
|---|---|---|---|
| ASSETS | $ | $ | |
| Current | |||
| Cash | 1,216,294 | 51,582 | |
| Receivables | 3 | 70,042 | 21,318 |
| Prepaid expenses | 201,306 | 12,004 | |
| 1,487,642 | 84,904 | ||
| Exploration and evaluation assets | 4 | 2,025,537 | 962,773 |
| Equipment | 5 | 48,040 | 60,847 |
| Total assets | 3,561,219 | 1,108,524 | |
| LIABILITIES | |||
| Current | |||
| Accounts payable and accrued liabilities | 8 | 523,153 | 217,775 |
| Flow-through liability | 7 | 115,571 | - |
| Total liabilities | 638,724 | 217,775 | |
| SHAREHOLDERS' EQUITY | |||
| Share capital | 6(b) | 7,107,285 | 4,543,463 |
| Equity reserves | 6(c,d,e) | 564,812 | 320,695 |
| Accumulated deficit | (4,749,602) | (3,973,409) | |
| Total shareholders' equity | 2,922,495 | 890,749 | |
| Total liabilities and shareholders' equity | 3,561,219 | 1,108,524 |
Nature of operations and going concern (note 1)
Subsequent events (note 12)
Approved and authorized for issue on behalf of the Board of Directors:
/s/ Kerem Usenmez
Director
/s/ Brad Humphrey
Director
The accompanying notes are an integral part of these condensed interim financial statements.
VOLTA METALS LTD.
Condensed Interim Statements of Loss and Comprehensive Loss
(Unaudited - Expressed in Canadian dollars)
| Note | Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||
| $ | $ | $ | $ | ||
| Expenses | |||||
| Depreciation | 5 | 4,269 | 4,176 | 12,807 | 11,253 |
| Directors' fees | 7 | 15,000 | 32,751 | 43,407 | 98,477 |
| Exploration and evaluation | 4 | 317,207 | 29,116 | 282,653 | 56,207 |
| General and administrative | 1,300 | 1,109 | 4,258 | 4,754 | |
| Insurance | 6,686 | 6,684 | 20,054 | 16,907 | |
| Management fees | 8 | 60,000 | 60,000 | 180,000 | 180,000 |
| Marketing and investor relations | 62,393 | 16,981 | 87,405 | 72,234 | |
| Professional fees | 13,302 | 16,893 | 32,445 | 131,084 | |
| Share-based compensation | 6(d,e) | 129,096 | 4,073 | 145,496 | 54,442 |
| Transfer agent and filing fees | 9,467 | 4,614 | 27,782 | 21,749 | |
| 618,720 | 176,397 | 836,307 | 647,107 | ||
| Other items | |||||
| Interest expense | - | - | - | (126) | |
| Interest income | 1,685 | 3,171 | 1,685 | 7,633 | |
| Impairment of exploration and evaluation assets | - | (88,574) | - | (130,574) | |
| Settlement of flow-through premium liability | 58,429 | - | 58,429 | - | |
| Loss and comprehensive loss for the period | (558,606) | (261,800) | (776,193) | (770,174) | |
| Loss per share | |||||
| Basic and diluted | (0.01) | (0.01) | (0.01) | (0.02) | |
| Weighted average number of common shares | |||||
| Basic and diluted | 91,665,636 | 51,408,764 | 71,606,890 | 45,566,397 |
The accompanying notes are an integral part of these condensed interim financial statements.
VOLTA METALS LTD.
Condensed Interim Statements of Cash Flows
(Unaudited - Expressed in Canadian dollars)
| Nine months ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| $ | $ | |
| Operating activities: | ||
| Loss and comprehensive loss for the period | (776,193) | (770,174) |
| Items not affecting cash: | ||
| Depreciation | 12,807 | 11,253 |
| Share-based compensation | 145,496 | 54,442 |
| Impairment of exploration and evaluation assets | - | 130,574 |
| Settlement of flow-through premium liability | (58,429) | - |
| Changes in non-cash working capital: | ||
| Receivables | (48,724) | 162,349 |
| Prepaid expenses | (189,302) | 1,970 |
| Accounts payable and accrued liabilities | 429,045 | 50,353 |
| Cash used in operating activities | (485,300) | (359,233) |
| Investing activities: | ||
| Investment in exploration and evaluation assets | (446,764) | (31,000) |
| Purchase of property, plant and equipment | - | (15,300) |
| Cash used in investing activities | (446,764) | (46,300) |
| Financing activities: | ||
| Proceeds from the issuance of shares | 2,208,335 | 455,000 |
| Share issuance costs | (111,559) | (2,278) |
| Cash provided by financing activities | 2,096,776 | 452,722 |
| Net change in cash | 1,164,712 | 47,189 |
| Cash, beginning of period | 51,582 | 296,644 |
| Cash, end of period | 1,216,294 | 343,833 |
| Supplemental cash flow information: | ||
| Income taxes paid | - | - |
| Interest paid | - | - |
| Issuance of common shares for the settlement of accounts payable | 123,667 | - |
| Issuance of common shares for exploration and evaluation assets | 616,000 | 16,000 |
The accompanying notes are an integral part of these condensed interim financial statements.
(Expressed in Canadian dollars, except number of shares)
VOLTA METALS LTD.
Condensed Interim Statements of Changes in Shareholders' Equity
| Number of shares | Share capital | Equity reserves | Accumulated deficit | Total shareholders' equity | |
|---|---|---|---|---|---|
| # | $ | $ | $ | $ | |
| Balance, December 31, 2023 | 41,913,112 | 3,854,001 | 164,573 | (2,895,708) | 1,122,866 |
| Common shares issued in private placement | 9,100,000 | 455,000 | - | - | 455,000 |
| Share issuance costs | - | (2,278) | - | - | (2,278) |
| Common shares issued for Falcon West Property | 400,000 | 16,000 | - | - | 16,000 |
| Share-based compensation | - | - | 54,442 | - | 54,442 |
| Loss and comprehensive loss for the period | - | - | - | (770,174) | (770,174) |
| Balance, September 30, 2024 | 51,413,112 | 4,322,723 | 219,015 | (3,665,882) | 875,856 |
| Common shares issued in private placement | 4,820,000 | 144,600 | 96,400 | - | 241,000 |
| Share issuance costs | - | (4,426) | (2,951) | - | (7,377) |
| Common shares issued for the Falcon West Property | 3,150,000 | 79,500 | - | - | 79,500 |
| Expiry of warrants | - | 1,066 | (1,066) | - | - |
| Share-based compensation | - | - | 9,297 | - | 9,297 |
| Loss and comprehensive loss for the period | - | - | - | (307,527) | (307,527) |
| Balance, December 31, 2024 | 59,383,112 | 4,543,463 | 320,695 | (3,973,409) | 890,749 |
| Number of shares | Share capital | Equity reserves | Accumulated deficit | Total shareholders' equity | |
| # | $ | $ | $ | $ | |
| Balance, December 31, 2024 | 59,383,112 | 4,543,463 | 320,695 | (3,973,409) | 890,749 |
| Common shares issued in private placement | 21,701,950 | 1,272,032 | 66,303 | - | 1,338,335 |
| Flow-through common shares issued in private placement | 8,700,000 | 870,000 | - | - | 870,000 |
| Flow-through premium liability | - | (174,000) | - | - | (174,000) |
| Share issuance costs | - | (143,877) | (1,649) | - | (145,526) |
| Warrants issued for services (agents' fees) | - | - | 33,967 | - | 33,967 |
| Common shares issued for the Falcon West Property | 400,000 | 16,000 | - | - | 16,000 |
| Common shares issued for the Springer Property | 10,000,000 | 600,000 | - | - | 600,000 |
| Common shares issued for payables | 2,473,332 | 123,667 | - | - | 123,667 |
| Share-based compensation | - | - | 145,496 | - | 145,496 |
| Loss and comprehensive loss for the period | - | - | - | (776,193) | (776,193) |
| Balance, September 30, 2025 | 102,658,394 | 7,107,285 | 564,812 | (4,749,602) | 2,922,495 |
The accompanying notes are an integral part of these condensed interim financial statements.
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
1. NATURE OF BUSINESS AND GOING CONCERN
Volta Metals Ltd. (the "Company" or "Volta") was incorporated under the laws of British Columbia on April 3, 2018. The Company's head office and principal address is 130 King St. West, Suite 3680, Toronto, Ontario, M5X 1B1. The Company is listed on the Canadian Securities Exchange (the "CSE") under the symbol "VLTA" and the Frankfurt Stock Exchange under the symbol "DOW".
The Company's principal business activities include the acquisition and exploration of mineral property assets. The Company is considered to be in the exploration stage with respect to its interests in exploration and evaluation assets. The recoverability of the amounts comprising exploration and evaluation assets is dependent upon the confirmation of economically recoverable reserves, the ability of the Company to obtain the necessary financing to successfully complete their exploration and development, and future profitable production.
Going concern
The Company's principal business activities include the acquisition and exploration of mineral property assets. The Company is in the exploration stage with respect to its interests in exploration and evaluation assets. The recoverability of the amounts comprising exploration and evaluation assets is dependent upon the confirmation of economically recoverable reserves, the ability of the Company to obtain the necessary financing to successfully complete their exploration and development, and future profitable production.
These unaudited condensed interim financial statements for the three and nine months ended September 30, 2025 and 2024 (the "financial statements") have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. As at September 30, 2025, the Company had not yet achieved profitable operations and had accumulated losses of $4,749,602 (December 31, 2024 - $3,973,409) since inception and expects to incur further losses in the development of its business. The continuing operations of the Company are dependent upon obtaining the necessary financing to meet the Company's commitments as they become due and its ability to finance future exploration and development of potential business acquisitions, economically recoverable reserves, securing and maintaining title and beneficial interest in the properties, and upon future profitable production. Failure to continue as a going concern would require that assets and liabilities be recorded at their liquidation values, which may differ materially from their carrying values. These financial statements do not include adjustments that would be necessary should the Company be unable to continue as a going concern.
2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES
a) Statement of compliance and basis of measurement
These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"), including International Accounting Standard ("IAS") 34 – Interim Financial Reporting. These financial statements should be read in conjunction with the Company's annual financial statements for the year ended December 31, 2024, which have been prepared in accordance with IFRS. The accounting policies and methods of application adopted are consistent with those disclosed in Note 3 of the Company's annual consolidated financial statements for the year ended December 31, 2024.
The financial statements have been prepared on a historical cost basis, except for certain financial instruments that have been measured at fair value, as disclosed in Note 3 of the Company's annual consolidated financial statements for the year ended December 31, 2024.
These financial statements were approved by the Board of Directors and authorized for issue on November 27, 2025.
b) Critical accounting estimates and judgments
The preparation of financial statements requires management to exercise significant judgments in applying the Company's accounting policies and make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Estimates and assumptions are reviewed on an ongoing basis and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual future outcomes could differ from present estimates and assumptions, which may require material adjustments to the Company's financial statements. Revisions to accounting estimates are accounted for prospectively.
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES (continued)
b) Critical accounting estimates and judgments (continued)
Significant judgments exercised by management in applying the Company's accounting policies that have the most significant effect on the amounts recognized in the financial statements are as follows:
i. Going concern presentation
These financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. Management assesses the Company's ability to continue as a going concern at each reporting date using all quantitative and qualitative information available. This assessment, by its nature, relies on estimates and assumptions of future cash flows and other events (note 1(b)). Subsequent changes could materially impact the validity of the assessment.
ii. Review of asset carrying values and impairment assessment
Significant assumptions about the future and other key sources of estimation uncertainty could have a significant risk of resulting in a material adjustment to the carrying amounts of the Company's assets and liabilities. In accordance with the Company's accounting policy, the Company's exploration and evaluation assets are evaluated every reporting period to determine whether there are any indications of impairment. If any such indication exists, which is often judgmental, a formal estimate of the recoverable amount is performed, and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of an asset or cash-generating group of assets is measured at the higher of fair value less costs to sell, and value in use.
The evaluation of asset carrying values for indications of impairment includes consideration of both external and internal sources of information, including such factors as market and economic conditions, metal prices and forecasts, future plans for the Company's mineral properties and mineral resources and/or reserve estimates.
The determination of fair value less costs to sell and value in use requires management to make estimates and assumptions about expected production, sales volumes, commodity prices, discount rates, mineral resources, operating costs, taxes, and future capital expenditures. The estimates and assumptions are subject to risk and uncertainty; hence, there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reversed, with the impact recorded in profit or loss.
iii. Share-based payments
Share-based payments are subject to fair value estimates using the Black-Scholes model. The Black-Scholes model uses significant assumptions such as volatility, interest rates, and expected life.
There are no new accounting pronouncements that would have a material effect on the financial statements.
3. RECEIVABLES
The Company's receivables arise from goods and services tax ("GST") receivables due from the Canadian taxation authority.
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| GST receivable | $ 70,042 | $ 21,318 |
| 70,042 | 21,318 |
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
4. EXPLORATION AND EVALUATION ASSETS AND EXPENSES
During the nine months ended September 30, 2025 and the year ended December 31, 2024, the Company incurred the following acquisition costs that were capitalized to exploration and evaluation assets:
| Aki | Springer | Eau Claire | Junior Lake | Wakeman | White Lights | Total | |
|---|---|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | $ | $ | |
| Balance, December 31, 2023 | 487,698 | - | 900 | 57,300 | 42,000 | 87,674 | 675,572 |
| Cash option payments | 30,000 | - | - | - | - | - | 30,000 |
| Cash payments | 388,875 | - | - | - | - | - | 388,875 |
| Common shares | 95,500 | - | - | - | - | - | 95,500 |
| Other | 3,700 | - | - | - | - | - | 3,700 |
| Impairment | (43,000) | - | (900) | (57,300) | (42,000) | (87,674) | (230,874) |
| Balance, December 31, 2024 | 962,773 | - | - | - | - | - | 962,773 |
| Cash option payments | 12,000 | 320,400 | - | - | - | - | 332,400 |
| Cash payments | - | 80,000 | - | - | - | - | 80,000 |
| Common shares | 16,000 | 600,000 | - | - | - | - | 616,000 |
| Other | - | 34,364 | - | - | - | - | 34,364 |
| Balance, September 30, 2025 | 990,773 | 1,034,764 | - | - | - | - | 2,025,537 |
A summary of the Company's exploration and evaluation expenses (recovery) is as follows:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| $ | $ | $ | $ | |
| Aki | 29,593 | 29,116 | (8,027) | 19,318 |
| Springer | 283,764 | - | 284,630 | - |
| Junior Lake | - | - | - | 22,776 |
| Wakeman | - | - | - | 2,225 |
| White Lights | - | - | - | 5,563 |
| Other exploration projects | 3,850 | - | 6,050 | 6,325 |
| 317,207 | 29,116 | 282,653 | 56,207 |
a) Aki Project
On January 30, 2025, the Company announced that it was combining the adjoining Falcon West, Crescent Lake, and Zigzag projects into one consolidated project, named the Aki Project.
Falcon West
On November 25, 2022, the Company entered into an option agreement (the "Falcon West Option Agreement"), under which the Company has the exclusive option to acquire a 100% interest in the Falcon West project in northwestern Ontario, Canada (the "Falcon West Project"). In December 2024 and April 2025, amendments to the Falcon West Option Agreement were signed.
To acquire a 100% interest in the Falcon West Project, the Company, over three years, was initially required to: (i) pay a total of $420,000 in cash payments; (ii) issue common shares having an aggregate value at the time of issuance equal to $1,015,000; and (iii) incur an aggregate minimum of $1,300,000 in exploration expenditures on the project.
In November 2022, the Company made an initial cash payment of $50,000, and in June 2023, issued 431,655 common shares at a fair value of $0.20 per share for a value of $86,331. In November 2023, the Company made a cash payment of $100,000 and issued 2,000,000 common shares with a fair value of $0.10 per share for a value of $200,000.
In December 2024, the Company and the optionor signed an amendment to the Falcon West Option Agreement, and in February 2025, a second amendment was signed. The second amendment reduced the remaining outstanding payments under the agreement due to a decrease in the size of the property under option. The remaining payments were reduced by $96,000, from a total of $240,000 to $144,000; the remaining value of shares required to be issued was reduced to $390,000 from $650,000; and the remaining work expenditures were reduced to $450,000 from $750,000.
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
4. EXPLORATION AND EVALUATION ASSETS AND EXPENSES (continued)
a) Aki Project (continued)
During the nine months ended September 30, 2025, the Company entered into an option agreement to re-acquire this one claim block (along with two other claims near Falcon West) from the new claim holder for a total of $58,000 in cash and 400,000 common shares. A cash payment of $6,000 was made at the time of signing the agreement, along with the issuance of 400,000 common shares at a fair value of $16,000. A further cash payment of $6,000 was paid at the end of May 2025, and payments of $12,000, $14,000, and $20,000 are due on the first, second, and third anniversaries of the April 26, 2025 agreement, respectively. The claims under this agreement are subject to a 1.5% net smelter return royalty ("NSR"), and the Company has the right at any time to repurchase 1% of the NSR for $400,000 in cash.
In August 2025, the Company signed a third amendment with the optionor, dropping any remaining cash or share payments under the Falcon West Option Agreement and reducing the remaining work expenditures to $285,000, to be incurred on or before November 30, 2026.
A summary of the obligations the Company must meet to exercise the original Falcon West Option Agreement and the option to re-acquire the one claim block, reflecting all the subsequent amendments to the Falcon West Option Agreement, is as follows:
| Due date (on or before) | Exploration expenditures | Cash payments | Share issuance |
|---|---|---|---|
| $ | $ | $ | |
| November 30, 2022 (completed) | - | 50,000 | - |
| June 5, 2023 (completed) | - | - | 86,331 |
| November 25, 2023 (completed) | 250,000 | 100,000 | 200,000 |
| December 16, 2024 (completed, refer to note 6(b)) | 180,000 | 30,000 | 75,000 |
| April 26, 2025 (completed) | - | 6,000 | - |
| May 9, 2025 (completed) | - | 6,000 | 16,000 |
| April 26, 2026 | - | 12,000 | - |
| November 25, 2026 | 285,000 | - | - |
| April 26, 2027 | - | 14,000 | - |
| April 26, 2028 | - | 20,000 | - |
| 715,000 | 238,000 | 377,331 |
The Company incurred $8,367 in legal expenses acquiring the Falcon West Project, which was capitalized as an acquisition cost to exploration and evaluation assets. The Falcon West vendor retained a 1.5% NSR over the project. The Company has the right to repurchase 1% of the NSR for $1,000,000 in cash.
In May 2024, the Company entered into an agreement to acquire mineral claims contiguous to the Falcon West Project. The Company paid $31,000 in cash and issued 400,000 common shares, valued at $16,000, to acquire a 100% interest in the claims. Since these claims are contiguous to the Falcon West Project, they are considered one project. As part of the same transaction, the Company acquired the Lee Creek property, which is situated west of the Falcon West Project. The claims are subject to a 1.5% NSR, and the Company has the right to purchase 0.5% of the NSR for $400,000.
In November 2024, the Company acquired a 100% interest in the Zigzag lithium property (the "Zigzag Project"), which is contiguous to the Falcon West Project. The Company paid $350,000 for the Zigzag Project, which is subject to a 1% NSR.
Also, in November 2024, the Company entered into an agreement to acquire additional mineral claims contiguous to the Falcon West Project. The Company paid $7,875 in cash and issued 150,000 common shares, with a total fair value of $4,500, to acquire a 100% interest in the claims. The claims are subject to a 1.5% NSR, and the Company has the right to purchase 0.5% of the NSR for $400,000.
Crescent Lake
On November 30, 2022, the Company entered into an option agreement (the "Crescent Lake Option Agreement"), under which the Company had the exclusive option to acquire a 100% interest in the Crescent Lake Project in northwestern Ontario, Canada (the "Crescent Lake Project").
Pursuant to the terms of the Crescent Lake Option Agreement, on December 1, 2022, the Company made an initial cash payment of $14,000. On November 24, 2023, as per the option agreement, the Company made a second cash payment of $15,000 and issued 140,000 common shares with a fair value of $0.10 per share for a value of $14,000.
In 2024, it was agreed that the optionor would drop the Crescent claims and allow the Company to stake the claims it considered most prospective. As a result of the termination of the Crescent Lake Option Agreement, the carrying value of the property of $43,000 was written off. The Company staked approximately one-half of the claims originally under option at a cost of $3,700, which was capitalized as an acquisition cost to exploration and evaluation assets.
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
4. EXPLORATION AND EVALUATION ASSETS AND EXPENSES (continued)
a) Aki Project (continued)
A summary of the Company's exploration and evaluation expenses (recovery) on the Aki Project is as follows:
| Three months ended September 30, | Nine months ended, September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| $ | $ | $ | $ | |
| Assay and lab analysis | - | 17,548 | 860 | 29,711 |
| Camp | - | - | - | - |
| Channel sampling | - | - | - | - |
| Community engagement | 1,021 | 1,768 | 3,679 | 11,928 |
| Fieldwork | 2,481 | 1,125 | 4,250 | 16,657 |
| Geological consulting | 20,171 | 8,675 | 37,896 | 93,639 |
| Geophysics | - | - | - | 491 |
| Property maintenance | (2,500) | - | 12,500 | 28,897 |
| Environmental monitoring | 8,420 | - | 8,420 | - |
| Cost recovery | - | - | (75,632) | (162,005) |
| 29,593 | 29,116 | (8,027) | 19,318 |
b) Springer Project
On June 23, 2025, the Company entered into an option agreement (the "Springer Option Agreement") to acquire an initial 80% interest, and up to a 100% interest in the Springer rare earth and gallium deposit in Ontario, Canada (the "Springer Project").
To earn an 80% interest in the Springer Project, the Company must:
- on the signing of the Springer Option Agreement, issue 10,000,000 common shares (completed at a fair value of $600,000), and make aggregate cash payments of $320,400 (completed);
- on or before the first anniversary of the execution date of the Springer Option Agreement, issue 2,500,000 common shares, and make a cash payment of $266,000; and
- on or before the second anniversary of the execution date of the Springer Option Agreement, issue 2,500,000 common shares, and make aggregate cash payments of $502,000.
Upon earning in on the initial 80% of the Springer Project, the Company will assume the obligation to pay 80% of an existing 2.85% NSR on certain patented claims ("Existing Royalty"), of which 0.95% of the Existing Royalty can be bought for $950,000.
Additionally, upon earning in on the initial 80% of the Springer Project, the Company will grant a 2% NSR on certain unpatented Springer Project claims, of which 1% can be bought for $1,000,000.
Under the agreement signed on June 23, 2025, the patented claims within the Springer Project were subject to the rights of a certain owner of a 5% interest in such claims. Accordingly, the 80% interest was with respect to 95% of the patented claims and 100% of the unpatented claims. On September 18, 2025, the Company, along with the holder of the remaining 20% interest in the Springer Project, acquired the outstanding 5% interest with a total cash payment of $100,000, with the Company paying its $80,000 share, bringing the ownership of the patented claims to 100% (80% to the Company).
Under the Springer Option Agreement, the Company can acquire the remaining 20% interest until the date that is twelve months following the completion of a feasibility study on the Springer Project by paying the vendor the fair market value of the remaining 20% interest at the time of exercise.
A summary of the Company's exploration and evaluation expenses on the Springer Project is as follows:
| Three months ended September 30, | Nine months ended, September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| $ | $ | $ | $ | |
| Assay and lab analysis | 2,191 | - | 2,191 | - |
| Drilling | 184,488 | - | 184,488 | - |
| Fieldwork | 38,014 | - | 38,880 | - |
| Geological consulting | 33,475 | - | 33,475 | - |
| Technical report | 25,596 | - | 25,596 | - |
| 283,764 | - | 284,630 | - |
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
4. EXPLORATION AND EVALUATION ASSETS AND EXPENSES (continued)
c) Eau Claire Project
The Company held a 100% interest in various unpatented mining claims in northwestern Ontario, Canada, known as the "Eau Claire Project." In October 2022, the Company incurred $900 in staking costs to secure the project. The Company had spent only $250 on the Eau Claire Project since they were acquired, and the capitalized costs of $900 were written off, and the claims were dropped during the year ended December 31, 2024.
d) Junior Lake Project
In April 2023, the Company incurred $7,300 in staking costs to acquire a 100% interest in various unpatented mining claims in northwestern Ontario, Canada (the "Junior Lake Project"). On May 14, 2023, the Company entered into an option agreement (the "Swole Lake Option Agreement"), under which the Company had the exclusive option to acquire a 100% interest in various unpatented mining claims known as the "Swole Lake Project" (also known as the "Laumaune Property"). Since the Swole Lake Project was contiguous with the Junior Lake Project, the two were considered one project.
In May 2023, pursuant to the Swole Lake Option Agreement, the Company made a cash payment of $10,000. Following the completion of the Company's May 30, 2023 reverse takeover transaction, 200,000 common shares of the Company were issued at a fair value of $40,000 to complete the earn-in on the Swole Lake Project.
During 2024, the Company did not renew the Junior Lake and Swole Lake claims, and the property's carrying value of $57,300 was written off.
The Company did not make any expenditures on the Junior Lake Project during the nine months ended September 30, 2025 (September 30, 2024 - $22,776).
e) Wakeman Project
The Company had an option to earn a 100% interest in the Wakeman project in northwestern Ontario, Canada (the "Wakeman Project"). To exercise the option in full, the Company was required to make an additional $60,000 in cash payments over a two-year period, including a $12,000 payment before July 6, 2024. The Company decided to drop its option on the Wakeman Project, and this payment was not made. The carrying value of the mineral interests, totalling $42,000, consisting of the initial $10,000 cash payment and $32,000 in common shares issued on the signing of the option agreement and capitalized to exploration and evaluation assets, was written off.
The Company did not make any expenditures on the Wakeman Project during the nine months ended September 30, 2025 (nine months ended September 30, 2024 - $2,225).
f) White Lights Project
The Company had an option to earn a 100% interest in the White Lights project in northwestern Ontario, Canada (the "White Lights Project"). In September 2024, the Company decided to drop its option on the White Lights Project, and the carrying value of the property of $87,674, consisting of $55,000 in cash payments and $32,674 in common shares, was written off.
The Company did not make any expenditures on the White Lights Project during the nine months ended September 30, 2025 (nine months ended September 30, 2024 - $5,563).
g) Other Exploration Projects
During the nine months ended September 30, 2025, the Company had additional exploration and evaluation expenses of $6,050 on other projects and on properties for which the Company does not have title or an option agreement (nine months ended September 30, 2024 - $6,325).
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
5. EQUIPMENT
A summary of the Company's equipment is as follows:
| Exploration equipment $ | |
|---|---|
| Cost | |
| Balance, December 31, 2023 | 68,237 |
| Additions | 17,168 |
| Balance, December 31, 2024 | 85,405 |
| Additions | - |
| Balance, September 30, 2025 | 85,405 |
| Accumulated depreciation | |
| Balance, December 31, 2023 | 9,098 |
| Depreciation | 15,460 |
| Balance, December 31, 2024 | 24,558 |
| Depreciation | 12,807 |
| Balance, September 30, 2025 | 37,365 |
| Carrying amount | |
| Balance, December 31, 2024 | 60,847 |
| Balance, September 30, 2025 | 48,040 |
6. SHARE CAPITAL
a) Authorized
Unlimited number of common shares without par value.
b) Issued and outstanding
During the nine months ended September 30, 2025, the Company completed the following transactions:
- On May 9, 2025, the Company issued 400,000 common shares at a fair value of $16,000 as part of an option agreement to re-acquire one claim block from the Falcon West Project (along with two other claims near Falcon West) (note 4(a)).
- On June 13, 2025, the Company completed a private placement, issuing 13,260,700 units at a price of $0.05 per unit for gross proceeds of $663,035. Each unit consisted of one common share of the Company and one-half of one common share purchase warrant of the Company, with each warrant entitling the holder to purchase an additional common share of the Company at an exercise price of $0.10 per common share for 24 months from the closing of the private placement. The warrants were assigned a value of $66,303 using the residual value method. Share issue costs of $16,490 were paid in connection with the private placement, with $14,841 allocated to common shares and $1,649 to warrants.
- On June 20, 2025, the Company issued 2,473,332 units at a price of $0.05 per unit, for a total value of $123,667, to settle outstanding payables. Each unit consisted of one common share and one-half of one common share purchase warrant of the Company, with each warrant entitling the holder to purchase an additional common share of the Company at an exercise price of $0.10 per common share for 24 months from the closing of the private placement. The warrants were assigned a value of $nil using the residual value method. The payables included 2,373,332 units, valued at $118,667, representing settlement of outstanding directors' fees (note 8).
- On June 23, 2025, the Company issued 10,000,000 common shares at a fair value of $600,000 as part of the Springer option agreement (note 4(b)).
- On August 29, 2025, the Company completed a private placement, issuing 8,441,250 units at a price of $0.08 per unit for proceeds of $675,300, and 8,700,000 flow-through units at a price of $0.10 per flow-through unit for proceeds of $870,000, bringing the aggregate gross proceeds to $1,545,300. Each unit and flow-through unit consisted of one common share and one common share purchase warrant of the Company, with each warrant entitling the holder to purchase an additional common share of the Company at an exercise price of $0.15 per common share for 24 months from the closing of the private placement. The warrants were assigned a value of $nil using the residual value method. Share issue costs of $129,036 were paid in connection with the private placement, which included cash agents' fees of $76,466 and 780,325 agents' warrants with a fair value of $33,967. Each agents' warrant entitles the holder thereof to one common share of the Company at a price of $0.15 per common share for 24 months from the issue date. The Company recognized a $174,000 flow-through premium liability from the issuance of the flow-through shares.
13
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
6. SHARE CAPITAL (continued)
b) Issued and outstanding (continued)
During the year ended December 31, 2024, the Company completed the following transactions:
- On June 17, 2024, the Company completed a private placement, issuing 9,100,000 units at a price of $0.05 per unit for gross proceeds of $455,000. Each unit consisted of one common share and one-half of one common share purchase warrant of the Company, with each warrant entitling the holder thereof to purchase an additional common share of the Company at an exercise price of $0.10 per common share for 24 months from the closing of the private placement. The warrants were assigned a value of $nil using the residual value method. Share issue costs of $2,278 were paid in connection with the private placement.
- On July 8, 2024, the Company issued 400,000 common shares at a fair value of $16,000 to purchase mineral claims contiguous to the Company's Falcon West Project (note 4(a)).
- On November 22, 2024, the Company completed a private placement, issuing 4,820,000 units at a price of $0.05 per unit for gross proceeds of $241,000. Each unit consisted of one common share and one-half of one common share purchase warrant of the Company, with each warrant entitling the holder thereof to purchase an additional common share of the Company at an exercise price of $0.10 per common share for 24 months from the closing of the private placement. Share issue costs of $7,377 were paid in connection with the private placement. The Company bifurcated the value of the components of the units sold using a residual-value approach. The result was an allocation of $140,174 to common shares, with a residual value of $93,449 allocated to reserves for the warrant component of the unit. The share issue costs were allocated to the common shares and the warrants on a pro rata basis.
- On December 2, 2024, the Company issued 150,000 common shares at a fair value of $4,500 as payment for the purchase of mineral claims contiguous to the Company's Falcon West Project (note 4(a)).
- On December 12, 2024, the Company issued 3,000,000 common shares at a fair value of $75,000 as part of the option agreement on the Falcon West Project (note 4(a)).
c) Warrants
The following is a summary of the Company's warrant activity for the nine months ended September 30, 2025 and the year ended December 31, 2024:
| September 30, 2025 | December 31, 2024 | |||
|---|---|---|---|---|
| Number of warrants | Weighted average exercise price | Number of warrants | Weighted average exercise price | |
| # | $ | # | $ | |
| Outstanding, beginning | 7,060,000 | 0.10 | 250,000 | 0.40 |
| Issued | 25,788,591 | 0.13 | 6,960,000 | 0.10 |
| Expired | - | - | (150,000) | 0.60 |
| Outstanding, ending | 32,848,591 | 0.13 | 7,060,000 | 0.10 |
As part of the August 29, 2025 private placement (note 6(b)), the Company issued 17,141,250 warrants with an exercise price of $0.15 per common share for 24 months. Based on the residual method for measuring common shares and warrants issued as units, no value was allocated to the warrants issued as part of the units. In addition, 780,325 agents' warrants were issued, valued at $33,967, using the Black-Scholes option pricing model. The Company used the following assumptions when valuing the compensation warrants: dividend yield of 0%, expected volatility of 100%, risk-free interest rate of 2.64%, and an expected life of 2 years. Each agents' warrant entitles the holder to purchase one common share at a price of $0.15 for a period of two years from the date of issuance.
As part of the June 13, 2025 private placement (note 6(b)), the Company issued 6,630,350 warrants with an exercise price of $0.10 per common share for 24 months. Based on the residual method for measuring common shares and warrants issued as units, an amount of $64,654, net of share issue costs, was allocated to the warrant component of the unit. The share issue costs were allocated between the common shares and the warrants on a pro-rata basis.
As part of the June 17, 2024 private placement (note 6(b)), the Company issued 4,550,000 warrants. Each warrant has an exercise price of $0.10 per common share for a period of 24 months from the closing of the private placement. Based on the residual method for measuring common shares and warrants issued as units, no value was allocated to the warrants issued as part of the units.
As part of the November 22, 2024 private placement (note 6(b)), the Company issued 2,410,000 warrants with an exercise price of $0.10 per common share for 24 months. Based on the residual method for measuring common shares and warrants issued as units, an amount of $93,449, net of share issue costs, was allocated to reserves for the warrant component of the unit. The share issue costs were allocated between the common shares and the warrants on a pro-rata basis.
14
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
6. SHARE CAPITAL (continued)
c) Warrants
Details of the warrants outstanding as at September 30, 2025 are as follows:
| Date of grant | Date of expiry | Exercise price $ | Warrants outstanding # | Weighted average remaining life years |
|---|---|---|---|---|
| November 15, 2023 | November 15, 2028 | 0.10 | 100,000 | 3.13 |
| June 17, 2024 | June 17, 2026 | 0.10 | 4,550,000 | 0.71 |
| November 22, 2024 | November 22, 2026 | 0.10 | 2,410,000 | 1.15 |
| June 13, 2025 | June 13, 2027 | 0.10 | 6,630,350 | 1.70 |
| June 20, 2025 | June 20, 2027 | 0.10 | 1,236,666 | 1.72 |
| August 29, 2025 | August 29, 2027 | 0.15 | 17,921,575 | 1.91 |
| 0.13 | 32,848,591 | 1.64 |
d) Stock options
The Company adopted a long-term equity incentive plan, subject to regulatory and shareholder approvals, whereby directors may, from time to time, authorize the issuance of stock options to directors, officers, employees, and consultants of the Company, enabling them to acquire up to 10% of the issued and outstanding common shares of the Company. The stock options can be granted for a maximum term of ten years at an exercise price not less than the market price of the common shares on the grant date and are subject to vesting provisions as determined by the Company's Board of Directors.
The following is a summary of the Company's stock option activity for the nine months ended September 30, 2025 and the year ended December 31, 2024:
| September 30, 2025 | December 31, 2024 | |||
|---|---|---|---|---|
| Number of stock options | Weighted average exercise price | Number of stock options | Weighted average exercise price | |
| # | $ | # | $ | |
| Outstanding, beginning | 2,799,078 | 0.37 | 2,948,928 | 0.37 |
| Granted | 1,625,000 | 0.11 | 250,000 | 0.06 |
| Forfeited/expired | - | - | (399,850) | 0.20 |
| Outstanding, ending | 4,424,078 | 0.27 | 2,799,078 | 0.37 |
| Exercisable, ending | 3,257,243 | 0.33 | 1,872,494 | 0.46 |
A summary of the assumptions used in the Black-Scholes option pricing model for stock options granted during the nine months ended September 30, 2025 and the year ended December 31, 2025 is as follows:
| July 22, 2025 | July 2, 2024 | |
|---|---|---|
| Share price | $0.11 | $0.04 |
| Exercise price | $0.11 | $0.06 |
| Expected life | 5 years | 5 years |
| Expected volatility | 100% | 100% |
| Risk-free interest rate | 2.64% | 4.07% |
| Dividend yield | 0% | 0% |
| Fair value per stock option granted | $0.04 | $0.03 |
During the nine months ended September 30, 2025, the Company recognized stock option related share-based compensation expense of $75,972 (nine months ended September 30, 2024 - $54,442).
15
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
6. SHARE CAPITAL (continued)
d) Stock options
A summary of the Company's outstanding stock options as at September 30, 2025 is as follows:
| Date of expiry | Exercise price | Stock options outstanding | Stock options exercisable | Weighted average remaining life |
|---|---|---|---|---|
| $ | # | # | years | |
| June 26, 2028 | 0.20 | 1,950,000 | 1,950,000 | 2.74 |
| September 22, 2028 | 0.20 | 300,000 | 300,000 | 2.98 |
| November 26, 2028 | 1.80 | 98,078 | 98,078 | 3.16 |
| July 2, 2029 | 0.06 | 250,000 | 166,500 | 3.76 |
| January 16, 2030 | 2.50 | 150,000 | 150,000 | 4.55 |
| July 22, 2030 | 0.11 | 1,625,000 | 541,665 | 4.81 |
| April 28, 2032 | 0.30 | 25,000 | 25,000 | 6.58 |
| May 31, 2032 | 0.30 | 26,000 | 26,000 | 6.67 |
| 0.27 | 4,424,078 | 3,257,243 | 3.69 |
e) Restricted and deferred share units
Under the Company's long-term equity incentive plan, subject to regulatory and shareholder approvals, directors may authorize the issuance of restricted share units ("RSUs") to directors, officers, employees, and consultants of the Company, and deferred share units ("DSUs") to directors of the Company.
The aggregate number of common shares reserved for issuance under the long-term equity incentive plan for options, RSUs, and DSUs may not exceed 10% of the issued and outstanding common shares on the grant date. Additionally, the aggregate number of common shares reserved for issuance for RSUs and DSUs may not exceed 2,000,000.
RSUs
During the nine months ended September 30, 2025, the Company granted an aggregate of 700,000 RSUs (nine months ended September 30, 2024 – nil) to officers of the Company with a fair value of $77,000. The RSUs will vest 1/3 annually starting after one year. As at September 30, 2025, the Company had 700,000 RSUs outstanding (December 31, 2024 – nil). During the nine months ended September 30, 2025, the Company recognized RSU related share-based compensation expense of $9,024 (nine months ended September 30, 2024 - $nil).
DSUs
During the nine months ended September 30, 2025, the Company granted an aggregate of 550,000 DSUs (nine months ended September 30, 2024 – nil) to directors of the Company with a fair value of $60,500. Each DSU vested on the grant date and may be redeemed upon a director's retirement from the Board of Directors. As at September 30, 2025, the Company had 550,000 DSUs outstanding (December 31, 2024 – nil). During the nine months ended September 30, 2025, the Company recognized DSU related share-based compensation expense of $60,500 (nine months ended September 30, 2024 - $nil).
f) Escrowed shares
In connection with the Company's May 30, 2023 reverse takeover transaction, an escrow agreement (the "Escrow Agreement") between management and the Company's Board of Directors was completed, resulting in 4,352,120 common shares (the "Escrowed Shares") being deposited in escrow. Pursuant to the Escrow Agreement, 10% of the Escrowed Shares were released from escrow on the Escrow Agreement date (the "Initial Release"), and an additional 15% are being released every six months thereafter, for a period of 36 months following the Initial Release. These Escrowed Shares may not be transferred, assigned, or otherwise dealt without the consent of the regulatory authorities. As at September 30, 2025, a total of 3,046,484 Escrowed Shares have been released from escrow, leaving a remaining balance of 1,305,636 Escrowed Shares to be released as follows:
| Date of release | Number of common shares in escrow |
|---|---|
| # | |
| November 30, 2025 | 652,818 |
| May 30, 2026 | 652,818 |
| Total | 1,305,636 |
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
- FLOW-THROUGH PREMIUM LIABILITY
| Flow-through premium liability | |
|---|---|
| $ | |
| Balance, December 31, 2023 and 2024 | - |
| Liability recorded on flow-through proceeds | 174,000 |
| Settlement of flow-through premium liability | (58,429) |
| Balance, September 30, 2025 | 115,571 |
On August 29, 2025, the Company raised $870,000 through the issuance of 8,700,000 flow-through units. The proceeds are to be used for eligible "Canadian exploration expenses" that will qualify as "flow-through critical mineral mining expenditures" as such terms are defined in the Income Tax Act (Canada) ("Qualifying Expenditures").
A flow-through premium liability of $174,000 was recognized from the issuance of the flow-through units. During the nine months ended September 30, 2025, subsequent to the completion of the flow-through financing, the Company made Qualifying Expenditures of $116,858 and recognized a settlement of flow-through premium liability of $58,429. As of September 30, 2025, the Company had $577,855 remaining to be spent on qualifying flow-through expenditures by December 31, 2026.
- RELATED PARTY TRANSACTIONS
Key management personnel include those persons who have authority and responsibility for planning, directing, and controlling the Company's activities as a whole. The Company has determined that key management personnel consist of the Board of Directors and corporate officers. The aggregate amount paid or accrued to key management personnel or companies under their control was as follows:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| $ | $ | $ | $ | |
| Management and directors' fees | ||||
| Chief executive officer | 45,000 | 45,000 | 120,000 | 135,000 |
| Chief financial officer | 15,000 | 15,000 | 45,000 | 45,000 |
| Non-executive directors' fees | 15,000 | 32,751 | 43,407 | 98,477 |
| 75,000 | 92,751 | 208,407 | 278,477 | |
| Share-based compensation | ||||
| Chief executive officer | 24,291 | 2,467 | 28,404 | 15,604 |
| Chief financial officer | 10,097 | 4,453 | 13,920 | 15,899 |
| Non-executive directors | 80,429 | (3,260) | 88,233 | 20,386 |
| 114,817 | 3,660 | 130,557 | 51,889 | |
| 189,817 | 96,411 | 338,964 | 330,366 |
As at September 30, 2025, accounts payable and accrued liabilities included $144,997 owing to directors and officers (December 31, 2024 - $109,748).
The Company is party to management contracts with the Chief Executive Officer and the Chief Financial Officer. These contracts contain minimum commitments of up to 12 months of management fees in the event of termination without cause. In the event of a change in control, these contracts contain minimum commitments equal to up to 12 months of management fees for the Chief Financial Officer and up to 24 months for the Chief Executive Officer.
- CAPITAL MANAGEMENT
The Company's capital structure consists of all components of shareholders' equity. The Company's objective when managing capital is to maintain adequate levels of funding to support current operations, comprising the acquisition and development of its exploration and evaluation assets. The Company obtains funding primarily through issuing common stock. Future financings are dependent on market conditions, and there can be no assurance that the Company will be able to raise funds in the future.
There were no changes to the Company's approach to capital management during the nine months ended September 30, 2025. The Company is not subject to externally imposed capital requirements.
VOLTA METALS LTD.
Notes to the Condensed Interim Financial Statements
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - Expressed in Canadian dollars)
10. SEGMENT INFORMATION
The Company operates in one reportable segment, the acquisition and exploration of mineral properties. All of the Company's non-current assets are located in Canada.
11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Company's financial instruments consist of cash, receivables, and accounts payable and accrued liabilities and are classified and measured at amortized cost. The carrying value of these financial instruments approximates the fair value due to the relatively short-term maturity of these instruments.
Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are:
- Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and
- Level 3 – inputs for the asset or liability that are not based on observable market data.
The Company is exposed in varying degrees to a variety of financial instrument-related risks. The type of risk exposure and the way in which such exposure is managed is provided as follows:
a) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the Company by failing to discharge an obligation. Credit risk for the Company is associated with its cash. The Company has minimal exposure to credit risk on its cash, as the Company's cash is held with major Canadian financial institutions.
b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The Company's objective in managing liquidity risk is to maintain sufficient readily available reserves in order to meet its liquidity requirements at any point in time. The Company achieves this by maintaining sufficient cash and seeking equity financing when needed. The liquidity risk is associated with accounts payable and accrued liabilities.
c) Market risk
Market risk is the risk of loss that may arise from changes in market factors such as interest rates, other price risks, and foreign exchange rates. The Company holds its cash in bank accounts that earn variable interest rates. Due to the short-term nature of these financial instruments, fluctuations in market interest rates do not have a significant impact on the estimated fair value of the Company's cash balance as at September 30, 2025. The Company does not have any financial assets subject to changes in exchange rates, so it does not expect exchange rates to have a material impact on the Company.
12. SUBSEQUENT EVENTS
Issuance of warrants
Subsequent to September 30, 2025, the Company issued 1,000,000 common share purchase warrants. Each warrant is exercisable into one common share of the Company at an exercise price of $0.26 for a period of five years from the date of the grant.
Exercise of warrants
Subsequent to September 30, 2025, the Company issued 350,000 common shares on the exercise of 350,000 warrants for gross proceeds of $35,000.