Arbitration Financing

6 Months Ended

Apr. 30, 2025

Arbitration Financing [Abstract]

ARBITRATION FINANCING

NOTE 5 – ARBITRATION FINANCING

On September 5, 2023, the Company entered into a litigation Funding Agreement with Bench Walk, a third party, which specializes in funding litigation and arbitration claims. Under the terms of the LFA, Bench Walk has agreed to fund the Company with up to $9.5 million to cover the Company’s legal, tribunal and external expert costs and defined corporate operating expenses associated with the Arbitration proceedings as a purchase of a contingent entitlement to damages.

During the six months ended April 30, 2025, pursuant to the terms of the LFA, the Company received reimbursement of corporate operating costs in the amount of $200,000 from Bench Walk (April 30, 2024: $400,000). Additionally, Bench Walk has made payments on the Company’s behalf for legal and arbitration costs totaling $1,346,835 during the six months ended April 30, 2025 and accumulated legal and arbitration costs of $2,926,219 since September 2023. The Company continues to have complete control over the conduct of the international arbitration proceedings, insofar as the proceedings relate to the Company’s claims, and continues to have the right to settle with Mexico, discontinue proceedings, pursue the proceedings to a merits hearing and take any action the Company considers appropriate to enforce the resulting arbitral award.

The Company agreed that Bench Walk shall be entitled to receive a share of any proceeds arising from the Claim (the “Claim Proceeds”) of up to 3.5x Bench Walk’s capital outlay (or, if greater, a return of 1.0x Bench Walk’s capital outlay plus 30% of Claim Proceeds). The actual return to Bench Walk may be lower than the foregoing amounts depending on how quickly the Claim is resolved.

As security for Bench Walk’s entitlement to receive a share of the Claim Proceeds under the LFA, the Company granted to Bench Walk a security interest in the Claim Proceeds, the Claim, all documents of title pertaining to the Claim, rights under any appeal bond or similar instrument posted by any of the defendants in the Claim, and all proceeds of any of the foregoing.

During the six months ended April 30, 2025 and 2024, the following is a summary of the Company’s expenditures that have been incurred and reimbursed or are expected to be reimbursed from Bench Walk.

	For the Three Months Ended				For the Six Months Ended
	April 30,				April 30,
	2025		2024		2025			2024
Exploration and property holding costs	$	31,350	$	31,470	$	67,664		$	106,554
Personnel		59,908		61,652		117,278			119,226
Office and administrative		56,940		43,793		80,024			97,482
Professional services		26,104		51,475		65,010			112,317
Directors’ fees		22,396		21,304		44,328			43,700
Income Taxes		—		2,980		2,107			2,980
		196,698		212,674		376,411			482,259
Changes for the period		160,926		9,682		(18,787	)		(259,903	)
Accounts receivable	$	357,624		222,356	$	357,624		$	222,356

Accounts receivable – October 31, 2024	$	181,213
Expenditure incurred during the six months ended April 30, 2025		376,411
Funding received		(200,000	)
Accounts receivable – April 30, 2025	$	357,624