| Investment in Joint Venture |
| 9. | Investment
in Joint Venture |
On
March 12, 2025, Snow Lake announced that it has entered into a 50/50 joint venture (the “Joint Venture”) with Global
Uranium and Enrichment Limited (“GUE”), to acquire 100% of the Pine Ridge Uranium Project (“Pine Ridge”) in
the Powder River Basin in Wyoming, United States.
The
Company’s interest in the Joint Venture (“Powder River Basin LLC” or the “Buyer”) is accounted for using the equity
method in the consolidated financial statements. Summarized financial information of the joint venture are set out
below:
Schedule
of financial information in Joint Venture
| | |
June 30, 2025 | | |
June 30, 2024 | |
| | |
$ | | |
$ | |
Current Assets, including cash and cash equivalents of $1,060,770 and prepayments of $93,953
| |
| 1,154,723 | | |
| — | |
| Non-current assets | |
| 32,115,558 | | |
| — | |
| Current liabilities | |
| (10,657,035 | ) | |
| — | |
| Non-current liabilities | |
| (10,232,250 | ) | |
| — | |
| Net Assets | |
| 12,380,996 | | |
| — | |
The summarized statement of profit and loss of Powder River Basin LLC for the period from incorporation to June 30, 2025 is
set out below:
Schedule
of profit and loss of Powder River Basin LLC in Joint Venture
| | |
June 30, 2025 | | |
June 30, 2024 | |
| | |
$ | | |
$ | |
| Administrative expenses | |
| 13,200 | | |
| — | |
| Insurance expenses | |
| 21,430 | | |
| — | |
| Loss for the year | |
| (34,630 | ) | |
| — | |
| Company’s share of loss for the year | |
| (17,315 | ) | |
| — | |
The carrying value of the investment in the Joint Venture is as follows:
Schedule
of investment in the Joint Venture
| | |
$ | |
| Balance, June 30, 2023 and 2024 | |
— | |
| Cash contributions to JV | |
| 6,291,062 | |
| Deferred contributions | |
| 10,232,250 | |
| Share of loss in Powder River Basin LLC | |
| (17,315 | ) |
| Balance, June 30, 2025 | |
| 16,505,997 | |
Contingent
Liabilities and Commitments:
The Buyer will purchase Pine Ridge
from Stakeholder Energy LLC (Seller”) upon payment to the Seller of $US22,500,000 cash, to be paid in three equal installments of US$7,500,000, payable as follows:
| i. | US$7,500,000
to be paid at closing (Closing) of the Acquisition contemplated by the Purchase and Sale
Agreement (Acquisition Agreement) (First Instalment); |
| ii. | US$7,500,000
to be paid on or before one-year from the date of Closing (Second Instalment); and |
| iii. | US$7,500,000
to be paid on or before two years from the date of Closing (Third Instalment). |
Further:
| i. | The
Buyer shall pay the Seller a production royalty based on an applicable royalty percentage
(which will be calculated by a Net Smelter Returns variable between 3.5% and 6%, dependent
on U3O8 Realized Price) from uranium, vanadium and related minerals produced and sold
or deemed sold by Buyer from any additional property or property interests acquired by
the Buyer, or its affiliates or permitted assigns, within twenty (20) years after the
effective date of March 11, 2025. |
| ii. | The
Buyer shall expend a minimum of US$10,000,000 in exploration and development costs by
the three-year anniversary of the Closing. |
The Company is responsible for the 50% payment of the consideration. Deferred liabilities (current) have been
recognised for its portion (US$3.75m) which is payable within 12 months and a further deferred liabilities (non-current)
has been recognised for its portion (US$3.75m) which is payable within 24 months.
|