Assets Held For Sale

3 Months Ended

Mar. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

Assets Held For Sale

Assets Held For Sale

As of March 31, 2023 and December 31, 2022, the Company’s Assets held for sale was comprised of equipment not-in-use of $7.1 million.

In August 2022, the Company entered into an Equipment Purchase Agreement to sell one ball mill and one semi-autogenous mill (“SAG mill”) for consideration of $12.0 million. The Company amended the Equipment Purchase Agreement in December 2022 and January 2023 to include a sub-station transformer for an additional amount of $1.6 million for a total amended Equipment Purchase Agreement amount of $13.6 million of which the Company has received payments totaling $1.1 million. Under the terms of the Equipment Purchase Agreement, as amended, the final payment for the ball mill and SAG mill was due December 31, 2022 and the buyer extended the final payment of $12.5 million up to June 30, 2023 at an interest rate of 5% per annum on the outstanding balance for the ball mill and SAG mill from January 1, 2023 through March 31, 2023 and 7.5% per annum on any outstanding balance from April 1, 2023 until June 30, 2023. During the three months ended March 31, 2023, the Company received $0.1 million of interest which is included in Interest income. In addition, the Company is being reimbursed by the buyer for certain holding costs related to the ball and SAG mills. These costs are recorded as an offset to Mine site period costs..

As of March 31, 2023, the Company held title to and risk of loss of the ball mill, SAG mill and sub-station transformer and, as such, payments received to-date of $1.1 million toward the purchase of these assets have been included in Contract liabilities.