Investment in BeMetals Corp

12 Months Ended

Dec. 31, 2021

Notes

Investment in BeMetals Corp. [Text Block]

4. Investment in BeMetals Corp.

In June 2019 in connection with the BeMetals Option Agreement (see Note 3), the Company received 10,000,000 shares of BeMetals Corp. common stock that had a fair value of $1,883,875. 

On May 4, 2021, the Company sold 2,000,000 shares held in BeMetals Corp. for US $649,557 ($CAD 800,000). The shares of common stock were sold through Canaccord Genuity at a price of US $0.325 ($CAD 0.40). This sale met the requirements under the terms of the BeMetals Option Agreement.

At December 31, 2021, the fair value of the remaining shares is $1,520,684. For the year ended December 31, 2021, the Company recognized a gain of $92,685, on the sale of BeMetals shares. A foreign exchange gain of $9,147 was recognized on the sale as the funds were not transferred to the company until May 17, 2021. This gain is included in other income on the statement of operations.

The Company had an unrealized loss on the change in fair value of the investment of $941,079 for the year ended December 31, 2021, compared to an unrealized gain of $1,282,804 for the year ended 2020.