Radius Gold Inc. (RDU) 2023年年度報告「TSX-V」.pdf

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1、FINANCIAL REVIEW Fiscal Year Ended December 31,2023CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2023(Expressed in Canadian Dollars)VANCOUVER1700475 Howe StVancouver,BC V6C 2B3T:604 687 1231F:604 688 4675LANGLEY60019933 88 AveLangley,BC V2Y 4K5T:604 282 3600F:604 357 1376NANAIMO20

2、11825 Bowen RdNanaimo,BC V9S 1H1T:250 755 2111F:250 984 0886SMYTHE LLP|1 INDEPENDENT AUDITORS REPORT TO THE SHAREHOLDERS OF RADIUS GOLD INC.Opinion We have audited the consolidated financial statements of Radius Gold Inc.and its subsidiaries(the Company),which comprise:the consolidated statements of

3、 financial position as at December 31,2023 and 2022;the consolidated statements of income(loss)and comprehensive income(loss)for the years then ended;the consolidated statements of changes in equity for the years then ended;the consolidated statements of cash flows for the years then ended;and the n

4、otes to the consolidated financial statements,including material accounting policy information.In our opinion,the accompanying consolidated financial statements present fairly,in all material respects,the consolidated financial position of the Company as at December 31,2023 and 2022,and its consolid

5、ated financial performance and consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards(“IFRS”).Basis for Opinion We conducted our audits in accordance with Canadian generally accepted auditing standards.Our responsibilities under those standard

6、s are further described in the Auditors Responsibilities for the Audit of the Consolidated Financial Statements section of our report.We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada,and we

7、 have fulfilled our other ethical responsibilities in accordance with these requirements.We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our opinion.Key Audit Matters Key audit matters are those matters that,in our professional j

8、udgment,were of most significance in our audit of the consolidated financial statements for the year ended December 31,2023.These matters were addressed in the context of our audit of the consolidated financial statements as a whole,and in forming our opinion thereon,and we do not provide a separate

9、 opinion on these matters.We have determined that there are no other key audit matters to communicate in our auditors report.Other Information Management is responsible for the other information.The other information comprises the information included in Managements Discussion and Analysis.Our opini

10、on on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.VANCOUVER1700475 Howe StVancouver,BC V6C 2B3T:604 687 1231F:604 688 4675LANGLEY60019933 88 AveLangley,BC V2Y 4K5T:604 282 3600F:604 357 1376NANAIMO2011825 B

11、owen RdNanaimo,BC V9S 1H1T:250 755 2111F:250 984 0886SMYTHE LLP|2 In connection with our audit of the consolidated financial statements,our responsibility is to read the other information identified above and,in doing so,consider whether the other information is materially inconsistent with the cons

12、olidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.We obtained Managements Discussion and Analysis prior to the date of this auditors report.If,based on the work we have performed,we conclude that there is a material misstatement of t

13、his other information,we are required to report that fact.We have nothing to report in this regard.Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financ

14、ial statements in accordance with IFRS,and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,whether due to fraud or error.In preparing the consolidated financial statements,manageme

15、nt is responsible for assessing the Companys ability to continue as a going concern,disclosing,as applicable,matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations,or has no realistic alternati

16、ve but to do so.Those charged with governance are responsible for overseeing the Companys financial reporting process.Auditors Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements

17、 as a whole are free from material misstatement,whether due to fraud or error,and to issue an auditors report that includes our opinion.Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards w

18、ill always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if,individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial state

19、ments.As part of an audit in accordance with Canadian generally accepted auditing standards,we exercise professional judgment and maintain professional skepticism throughout the audit.We also:Identify and assess the risks of material misstatement of the consolidated financial statements,whether due

20、to fraud or error,design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud

21、may involve collusion,forgery,intentional omissions,misrepresentations,or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion

22、on the effectiveness of the Companys internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.VANCOUVER1700475 Howe StVancouver,BC V6C 2B3T:604 687 1231F:604 688 4675LANGLEY60019933 88 AveLangl

23、ey,BC V2Y 4K5T:604 282 3600F:604 357 1376NANAIMO2011825 Bowen RdNanaimo,BC V9S 1H1T:250 755 2111F:250 984 0886SMYTHE LLP|3 Conclude on the appropriateness of managements use of the going concern basis of accounting and,based on the audit evidence obtained,whether a material uncertainty exists relate

24、d to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern.If we conclude that a material uncertainty exists,we are required to draw attention in our auditors report to the related disclosures in the consolidated financial statements or,if such d

25、isclosures are inadequate,to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditors report.However,future events or conditions may cause the Company to cease to continue as a going concern.Evaluate the overall presentation,structure and content of

26、the consolidated financial statements,including the disclosures,and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.Obtain sufficient appropriate audit evidence regarding the financial information of the entit

27、ies or business activities within the Company to express an opinion on the consolidated financial statements.We are responsible for the direction,supervision and performance of the group audit.We remain solely responsible for our audit opinion.We communicate with those charged with governance regard

28、ing,among other matters,the planned scope and timing of the audit and significant audit findings,including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical req

29、uirements regarding independence,and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,and where applicable,related safeguards.From the matters communicated with those charged with governance,we determine those matters that were o

30、f most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters.We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when,in extremely rare circumstances,we de

31、termine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.The engagement partner on the audit resulting in this independent auditors report Michelle Chi Wai S

32、o.Chartered Professional Accountants Vancouver,British Columbia April 25,2024 RADIUS GOLD INC.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(Expressed in Canadian Dollars)4 As at December 31 2023 2022 ASSETS Current assets Cash and cash equivalents(Note 5)$910,755$1,420,114 Equity investments(Note 6)

33、1,009,9001,868,883 Receivables(Notes 7 and 16)190,28680,183 Prepaid expenses and deposits(Note 16)83,54853,467 Total current assets 2,194,4893,422,647 Non-current assets Long-term deposits(Note 16)63,000123,098 Property and equipment(Note 8)43,0486,970 Right-of-use asset(Note 9)60,630121,097Mineral

34、property and royalty interests(Note 11)137,402 Total non-current assets 166,679288,567 TOTAL ASSETS$2,361,168$3,711,214 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Accounts payable and accrued liabilities(Note 16)$89,938$100,059 Current portion of lease liability(Note 9)81,94272,689171,8

35、80172,748Non-current liabilities Lease liability(Note 9)-81,942Total liabilities 171,880254,690Shareholders equity Share capital(Note 13)58,776,806 56,728,904 Obligation to issue shares(Note 16)-120,625Other equity reserve(Note 13)7,562,565 7,260,439 Accumulated other comprehensive loss(4,326,829)(3

36、,467,846)Deficit(59,823,254)(57,185,598)Total shareholders equity 2,189,2883,456,524 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY$2,361,168$3,711,214 APPROVED ON BEHALF OF THE BOARD OF DIRECTORS AND AUTHORIZED FOR ISSUE ON APRIL 25,2024 BY:“Bruce Smith”,Director“William Katzin”,Director Bruce Smith Wil

37、liam Katzin The accompanying notes form an integral part of these consolidated financial statements.RADIUS GOLD INC.CONSOLIDATED STATEMENTS OF INCOME(LOSS)AND COMPREHENSIVE INCOME(LOSS)For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)5 2023 2022 Exploration expenditures(No

38、te 16)$1,572,144$732,140 Write-off of mineral property interests(Note 11)309,223-1,881,367732,140General and administrative expensesAmortization(Note 8)8,8392,232 Depreciation of right-of-use asset(Note 9)60,46760,467Interest expense on lease liability(Note 9)11,64618,158Legal and audit fees58,91051

39、,626 Management fees(Note 16)64,000 66,000 Office and miscellaneous(Notes 12 and 16)35,23316,630 Salaries and benefits(Note 16)160,787149,330 Share-based compensation(Notes 14 and 16)308,63146,875Shareholder communications(Note 16)69,17244,859 Transfer agent and regulatory fees(Note 16)23,79318,936

40、Travel and accommodation(Note 16)46,10647,567 847,584522,680 Loss from operations (2,728,951)(1,254,820)Investment income13,5029,954 Foreign currency exchange(loss)gain(28,409)63,570 Gain on reclassification as equity investment(Notes 6 and 10)-1,350,913Gain from mineral property option agreements(N

41、ote 11)106,202894,097 Gain on disposal of equipment(Note 8)-12,440Net(loss)income for the year$(2,637,656)$1,076,154 Other comprehensive income(loss)Items that will not be reclassified subsequently to profit or loss:Losses on sale of equity investments(Note 6)-(401,465)Fair value gains(losses)on equ

42、ity investments(Note 6)(858,983)230,880Total comprehensive(loss)income$(3,496,639)$905,569 Basic and diluted(loss)income per share(Note 3(i)$(0.03)$0.01Weighted average number of common shares outstanding 94,086,89687,252,523 The accompanying notes form an integral part of these consolidated financi

43、al statements.RADIUS GOLD INC.CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)6 Number of common sharesShare capitalObligation to issue sharesOther equity reserveAccumulated other comprehensive lossDeficitTotalBalance,December

44、31,202187,243,550$56,723,224$73,750$7,262,369$(3,297,261)$(58,261,752)$2,500,330Income for the year-1,076,1541,076,154Obligation to issue shares(Note 16)-46,875-46,875Options exercised 25,000 3,750-3,750 Transfer of other equity reserve on exercise of options-1,930-(1,930)-Equity investments-(170,58

45、5)-(170,585)Balance,December 31,202287,268,550 56,728,904 120,625 7,260,439(3,467,846)(57,185,598)3,456,524 Loss for the year-(2,637,656)(2,637,656)Shares issued for private placement11,149,9831,951,247-1,951,247Shares issued for services(Note 16)500,000120,625(120,625)-Options exercised200,000 30,0

46、00-30,000 Transfer of other equity reserve on exercise of options-15,440-(15,440)-Share issuance costs-(69,410)-8,935-(60,475)Equity investments-(858,983)-(858,983)Share-based compensation-308,631-308,631Balance,December 31,202399,118,533$58,776,806$-$7,562,565$(4,326,829)$(59,823,254)$2,189,288The

47、accompanying notes form an integral part of these consolidated financial statements.RADIUS GOLD INC.CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)7 2023 2022 Cash provided(used in):OPERATING ACTIVITIES Net(loss)income for the year$(

48、2,637,656)$1,076,154Items not involving cash:Amortization8,8392,232 Gain on reclassification as equity investment-(1,350,913)Gain from mineral property option agreements(106,202)(894,097)Gain on disposal of equipment-(12,440)Depreciation of right-of-use asset60,46760,467Write off of mineral property

49、 interests309,223-Share-based compensation308,63146,875(2,056,698)(1,071,722)Changes in non-cash working capital items:Receivables(110,103)(48,299)Prepaid expenses and deposits30,0175,912 Accounts payable and accrued liabilities(10,121)15,727Cash used in operating activities(2,146,905)(1,098,382)FIN

50、ANCING ACTIVITIES Proceeds on issuance of common shares1,920,7723,750Repayment of lease obligation(72,689)(64,260)Cash provided by(used in)financing activities1,848,083(60,510)INVESTING ACTIVITIES Expenditures on mineral property acquisition costs(726,641)(940,682)Proceeds from mineral property opti

51、on agreements561,0211,924,044 Proceeds from sale of equity investments-51,175 Proceeds from sale of equipment-12,440Purchase of property and equipment(44,917)(669)Cash provided by(used in)investing activities(210,537)1,046,308Decrease in cash and cash equivalents (509,359)(112,584)Cash and cash equi

52、valents,beginning of year1,420,1141,532,698 Cash and cash equivalents,end of year(Note 5)$910,755$1,420,114 Supplemental Cash Flow Information(Note 20)The accompanying notes form an integral part of these consolidated financial statements.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

53、S For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)8 1.NATURE AND CONTINUANCE OF OPERATIONSRadius Gold Inc.(the“Company”)was formed by the amalgamation of Radius Explorations Ltd.and PilaGold Inc.effective on July 1,2004 under the laws of British Columbia.The Company is en

54、gaged in the acquisition and exploration of mineral properties and investment in companies which hold mineral property interests.The address of the Companys head office and principal place of business is 650 200 Burrard Street,Vancouver,BC,Canada V6C 3L6.These consolidated financial statements have

55、been prepared in accordance with International Financial Reporting Standards(“IFRS”)with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business rather than through a process of forced liquidation.The Company has incurred loss

56、es from inception and does not currently have the financial resources to sustain operations in the long term.The Company will periodically have to raise additional financing in order to acquire and conduct work programs on mineral properties and meet its ongoing levels of corporate overhead and disc

57、harge its liabilities as they come due.During the year ended December 31,2023,the Company raised capital by way of a non-brokered equity financing(Note 13)which provides working capital for operational activities.While the Company has been successful in securing financing in the past,there is no ass

58、urance that it will be able to do so in the future.2.BASIS OF PREPARATION These consolidated financial statements have been presented on the basis that the Company will continue as a going concern,which contemplates the realization of assets and the satisfaction of liabilities in the normal course o

59、f business.Statement of ComplianceThese consolidated financial statements have been prepared in accordance with IFRS,as issued by the International Accounting Standards Board.The accounting policies set out in Note 3 have been applied consistently by the Company and its subsidiaries to all periods p

60、resented.Basis of MeasurementThese consolidated financial statements have been prepared on the historical cost basis,except for certain financial instruments measured at fair value.In addition,these consolidated financial statements have been prepared using the accrual basis of accounting,except for

61、 cash flow information.The consolidated financial statements are presented in Canadian dollars(“CDN”),which is the Companys and its subsidiaries functional currency.The preparation of financial statements in compliance with IFRS requires management to make certain critical accounting estimates.It al

62、so requires management to exercise judgment in applying the Companys accounting policies.The areas involving a higher degree of judgment or complexity,or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.RADIUS GOLD INC.NOTES TO TH

63、E CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)9 3.MATERIAL ACCOUNTING POLICY INFORMATION The accounting policies set out below have been applied consistently to all years presented in these consolidated financial statements.a)Basis of

64、 Consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.A wholly owned subsidiary is an entity in which the Company has control,directly or indirectly,where control is defined as the power to govern the financial and operating poli

65、cies of an enterprise so as to obtain benefits from its activities.All material intercompany transactions and balances have been eliminated on consolidation.Subsidiaries are deconsolidated from the date control ceases.Details of the Companys principal subsidiaries at December 31,2023 and 2022 are as

66、 follows:Name Place of Incorporation Interest%Principal Activity Minerales Sierra Pacifico S.A.Guatemala100%Exploration companyGeometales Del Norte-GeonorteMexico100%Exploration companyRadius(Cayman)Inc.Cayman Islands100%Investment Holding companyb)Revenue Recognition The Company earns revenue from

67、royalty agreements and is based on amounts contractually due.Royalty revenue is measured at fair value of the consideration received or receivable when the Company can reliably estimate the amount,pursuant to the terms of the royalty agreement.For royalty interests,revenue recognition generally occu

68、rs in the month of production from the royalty property.Royalty revenue may be subject to adjustment upon final settlement of estimated metal prices,weights,and assays.Adjustments recorded upon final settlement are offset against revenue when incurred.Variations between the estimated price recorded

69、upon production and the actual final price set upon final settlement are caused by changes in market commodity prices,and result in an embedded derivative in the receivable.The embedded derivative is recorded at fair value each period until final settlement occurs,with changes in fair value classifi

70、ed as provisional price adjustments and included as a component of royalty revenue.As of December 31,2023 and 2022,there was no embedded derivative.c)Investment in Associate Where the Company has significant influence over the financial and operating policy decisions of another entity,it is classifi

71、ed as an associate.Associates are initially recognized in the consolidated statement of financial position at cost.The Companys share of post-acquisition profits and losses is recognized in profit or loss,except that losses in excess of the Companys investment in the associate are not recognized unl

72、ess there is an obligation to fund those losses.Profits and losses arising on transactions between the Company and its associates are recognized only to the extent of unrelated investors interests in the associate.The investors share in the associates profits and losses resulting from these transact

73、ions is eliminated against the carrying value of the associate.Any premium paid for an associate above the fair value of the Companys share of the identifiable assets,liabilities and contingent liabilities acquired is capitalized and included in the carrying amount of the associate.Adjustments to th

74、e carrying amount may also be necessary for changes in the Companys proportionate interest in the associate arising from changes in the associates other comprehensive income.Such adjustments to the carrying amount are charged to operations as a gain or loss on dilution in the associate.Where there i

75、s objective evidence that the investment in an associate has been impaired,the carrying amount of the investment is tested for impairment in the same way as other non-financial assets.Upon discontinuing the use of the equity method,an investment,if a financial asset,is to be measured at fair value a

76、nd the difference between the fair value and the carrying value of the investment recognized in profit or loss.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)10 3.MATERIAL ACCOUNTING POLICY INFORMATION(contd)

77、d)Foreign Currency Translation The functional and presentation currency of the Company and its principal subsidiaries is the Canadian dollar.Transactions denominated in a currency other than an entitys functional currency are translated as follows:unsettled monetary items denominated in a foreign cu

78、rrency are translated into Canadian dollars at exchange rates prevailing at the date of the statement of financial position and non-monetary items are translated at exchange rates prevailing when the assets were acquired or obligations incurred.Foreign currency denominated revenue and expense items

79、are translated at exchange rates prevailing at the transaction date.Gains or losses arising from the translations are included in profit or loss.e)Cash and Cash Equivalents Cash and cash equivalents include cash at banks and on hand,and other short-term,highly liquid investments with original maturi

80、ties of three months or less that are readily convertible to known amounts of cash and are subject to an insignificant risk of change of value.f)Mineral Property and Royalty Interests Exploration and evaluation assetsAcquisition costs for exploration and evaluation assets are capitalized and include

81、 the cash consideration paid and the fair value of common shares issued on acquisition,at the earlier of the date the counterpartys performance is complete or the share issuance date.Exploration expenditures,net of recoveries,are charged to operations as incurred.After a property is determined by ma

82、nagement to be commercially feasible,exploration and development expenditures on the property will be capitalized.On transfer to development properties,capitalized exploration and evaluation assets are assessed for impairment.Options are exercisable entirely at the discretion of the optionee and amo

83、unts received from optionees in connection with option agreements are credited against the capitalized acquisition costs classified as exploration and evaluation assets on the consolidated statement of financial position,with amounts received in excess credited to gain from mineral property option a

84、greements in profit or loss.Where the Company has entered into option agreements to acquire interests in exploration and evaluation assets that provide for periodic payments or periodic share issuances,amounts unpaid and unissued are not recorded as liabilities since they are payable and issuable en

85、tirely at the Companys option.Option payments are recorded as exploration and evaluation costs when the payments are made or received and the share issuances are recorded as exploration and evaluation costs using the fair market value of the Companys common shares at the earlier of the date the coun

86、terpartys performance is complete or the share issuance date.The Company is in the process of exploring and developing its exploration and evaluation assets and has not yet determined the amount of reserves available.Management reviews the carrying value of exploration and evaluation assets on a per

87、iodic basis and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable,the Company will test the asset for impairment based upon a variety of factors,including current exploration results,the prospect of further work being carried out by the

88、Company,the assessment of future probability of profitable revenues from the asset or from the sale of the asset.Amounts shown for exploration and evaluation assets represent costs incurred to date,net of write-downs and recoveries,and are not intended to represent present or future values.Environme

89、ntal expenditures that relate to current operations are expensed or capitalized as appropriate.Expenditures that relate to an existing condition caused by past operations and which do not contribute to current or future revenue generation are expensed.Liabilities are recorded when environmental asse

90、ssments and/or remedial efforts are probable and the costs can be reasonably estimated.Generally,the timing of these accruals would be when the actual environmental disturbance occurs.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Express

91、ed in Canadian Dollars)11 3.MATERIAL ACCOUNTING POLICY INFORMATION(contd)f)Mineral Property and Royalty Interests(contd)RoyaltiesRoyalty interests consist of acquired royalties in producing and exploration and evaluation stage properties.They are subsequently measured at cost less accumulated deplet

92、ion and depreciation and accumulated impairment losses.Producing properties are those that have generated revenue from steady-state operations for the Company.Exploration and evaluation stage properties represent early stage exploration properties that are speculative and are expected to require mor

93、e than two years to generate revenue,if ever,or are currently not active.Producing royalty interests are recorded at cost and capitalized in accordance with IAS 16,Property,Plant and Equipment.Producing royalty interests are depleted using the units-of-production method over the life of the property

94、 to which the interest relates,which is estimated using available estimates of proven and probable reserves specifically associated with the properties.Management relies on information available to it under contracts with the operators and/or public disclosures for information on proven and probable

95、 reserves and resources from the operators of the producing royalty interest.Royalty interests for exploration and evaluation assets are recorded at cost and capitalized in accordance with IFRS 6,Exploration for and Evaluation of Mineral Resources.Acquisition costs of exploration and evaluation roya

96、lty interests are capitalized and are not depleted until such time as revenue-generating activities begin.g)Property,Equipment and Amortization Recognition and Measurement On initial recognition,property and equipment are valued at cost,being the purchase price and directly attributable costs of acq

97、uisition required to bring the asset to the location and condition necessary to be capable of operating in a manner intended by the Company,including appropriate borrowing costs and the estimated present value of any future unavoidable costs of dismantling and removing items.The corresponding liabil

98、ity is recognized within provisions.Property and equipment is subsequently measured at cost less accumulated amortization,less any accumulated impairment losses,with the exception of land,which is not amortized.When parts of an item of property and equipment have different useful lives,they are acco

99、unted for as separate items(major components)of property and equipment.Gains and Losses Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount,that are recognized net within other income in profit or loss.Amor

100、tization Amortization is recognized in profit or loss and property and equipment is amortized over their estimated useful lives using the following methods:Trucks 4 8 years straight-line Computer equipment 25%50%declining balance Furniture and equipment 20%declining balance Geophysical equipment 20%

101、declining balance Field equipment 30%declining balance RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)12 3.MATERIAL ACCOUNTING POLICY INFORMATION(contd)h)Right-of-Use Assets Right-of-use(“ROU”)assets are init

102、ially recorded at cost,which comprises the initial amount of the lease liability and any initial direct costs incurred less any lease payments made at or before the initial recognition date.ROU assets are depreciated on a straight-line basis over the estimated useful life of the asset if the Company

103、 expects to take ownership of the asset at the end of the lease term,or over the lease term if the Company does not expect to take ownership of the asset at the end of the lease term.The lease term includes periods covered by an option to extend if the Companys intention is to exercise that option.R

104、OU assets are periodically reduced by impairment losses,if any,and adjusted for re-measurements of the lease obligation.i)Earnings/Loss per Share Basic earnings/loss per share is calculated by dividing the net earnings loss available to common shareholders by the weighted average number of shares ou

105、tstanding during the year.Diluted earnings per share reflects the potential dilution of securities that could share in earnings of the Company.For the year ended December 31,2023,potentially dilutive common shares(relating to options outstanding at year-end)totaling 4,920,000(2022:3,050,000)were not

106、 included in the computation of earnings/loss per share,because their effect was anti-dilutive.As such,basic and diluted earnings and losses per share were the same for the periods presented.j)Income Taxes Income tax expense comprises current and deferred tax.Current and deferred tax are recognized

107、in net loss/income except to the extent that it relates to a business combination or items recognized directly in equity or in other comprehensive loss/income.Current income taxes are recognized for the estimated income taxes payable or receivable on taxable income or loss for the current year and a

108、ny adjustment to income taxes payable in respect of previous years.Current income taxes are determined using tax rates and tax laws that have been enacted or substantively enacted by the year-end date.Deferred tax assets and liabilities are recognized where the carrying amount of an asset or liabili

109、ty differs from its tax base,except for those taxable temporary differences arising on the initial recognition of goodwill or on the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting nor tax

110、able profit or loss.Recognition of deferred tax assets for unused tax losses,tax credits and deductible temporary differences is restricted to those instances where it is probable that future taxable profit will be available against which the deferred tax asset can be utilized.At the end of each rep

111、orting year the Company reassesses unrecognized deferred tax assets.The Company recognizes a previously unrecognized deferred tax asset only to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.k)Share Capital Equity instruments are c

112、ontracts that give a residual interest in the net assets of the Company.Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset.The Companys common shares,share warrants,and options are c

113、lassified as equity instruments.Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,net of tax,from proceeds.Warrants issued by the Company typically accompany an issuance of shares in the Company(a“Unit”)and entitle the warrant holder to

114、exercise the warrants for a stated price and a stated number of common shares in the Company.The fair value of the Units components sold is measured using the residual value approach.The proceeds received are first allocated to common shares at the time the Units are priced,and any excess is allocat

115、ed to warrants.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)13 3.MATERIAL ACCOUNTING POLICY INFORMATION(contd)l)Share-based Payments Where equity-settled share options are awarded to employees,the fair valu

116、e of the options at the date of grant is charged to profit or loss over the vesting period.Performance vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that,ultimately,the cumulative amount recognized over the vesting

117、period is based on the number of options that eventually vest.As long as all other vesting conditions are satisfied,a charge is made irrespective of whether these vesting conditions are satisfied.The cumulative expense is not adjusted for failure to achieve a market vesting condition or where a non-

118、vesting condition is not satisfied.Where terms and conditions of options are modified before they vest,the increase in the fair value of the options,measured immediately before and after the modification,is also charged to profit or loss over the remaining vesting period.Where equity instruments are

119、 granted to employees,they are recorded at the fair value of the equity instrument granted at the grant date.The grant date fair value is recognized in profit or loss over the vesting period,described as the period during which all the vesting conditions are to be satisfied.Where equity instruments

120、are granted to non-employees,they are recorded at the fair value of the goods or services received in profit or loss.Options or warrants granted related to the issuance of shares are recorded as a reduction of share capital.When the value of goods or services received in exchange for the share-based

121、 payment cannot be reliably estimated,the fair value is measured by use of a valuation model or the fair value of the shares granted.All equity-settled share-based payments are reflected in other equity reserve,until exercised.Upon exercise,shares are issued from treasury and the amount reflected in

122、 other equity reserve is credited to share capital,adjusted for any consideration paid.Options that expire or are forfeited after vesting are not reclassified from other equity reserve to deficit.Where a grant of options is cancelled or settled during the vesting period,excluding forfeitures when ve

123、sting conditions are not satisfied,the Company immediately accounts for the cancellation as an acceleration of vesting and recognizes the amount that otherwise would have been recognized for services received over the remainder of the vesting period.Any payment made to the employee on the cancellati

124、on is accounted for as the repurchase of an equity interest except to the extent the payment exceeds the fair value of the equity instrument granted,measured at the repurchase date.Any such excess is recognized as an expense.m)Provisions Rehabilitation Provision The Company is subject to various gov

125、ernment laws and regulations relating to environmental disturbances caused by exploration and evaluation activities.The Company records the present value of the estimated costs of legal and constructive obligations required to restore the exploration sites in the year in which the obligation is incu

126、rred.The nature of the rehabilitation activities may include restoration,reclamation and revegetation of the affected exploration sites.The rehabilitation provision generally arises when the environmental disturbance is subject to government laws and regulations.When the liability is recognized,the

127、present value of the estimated costs is capitalized by increasing the carrying amount of the related exploration properties.Over time,the discounted liability is increased for the changes in present value based on current market discount rates and liability specific risks.As at December 31,2023 and

128、2022,the Company had no significant asset retirement or rehabilitation obligations.Other Provisions Provisions are recognized where a legal or constructive obligation has been incurred as a result of past events,it is probable that an outflow of resources embodying economic benefit will be required

129、to settle the obligation,and a reliable estimate of the amount of the obligation can be made.If material,provisions are measured at the present value of the expenditures expected to be required to settle the obligation.The increase in any provision due to passage of time is recognized as accretion e

130、xpense.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)14 3.MATERIAL ACCOUNTING POLICY INFORMATION(contd)n)Impairment of Non-Financial Assets Impairment tests on non-financial assets,including exploration and

131、evaluation assets,are undertaken whenever events or changes in circumstances indicate that their carrying amount may not be recoverable.Where the carrying value of an asset exceeds its recoverable amount,which is the higher of value in use and fair value less costs of disposal,the asset is written d

132、own accordingly.Where it is not possible to estimate the recoverable amount of an individual asset,the impairment test is carried out on the assets cash-generating unit,which is the lowest group of assets in which the asset belongs for which there are separately identifiable cash inflows that are la

133、rgely independent of the cash inflows from other assets.An impairment loss is charged to profit or loss,except to the extent they reverse gains previously recognized in other comprehensive loss/income.o)Financial Instruments Financial Assets The Company recognizes a financial asset when it becomes a

134、 party to the contractual provisions of the instrument.The Company classifies financial assets at initial recognition as financial assets:measured at amortized cost,measured at fair value through other comprehensive income or measured at fair value through profit or loss.Financial assets measured at

135、 amortized cost A financial asset that meets both of the following conditions is classified as a financial asset measured at amortized cost.-The Companys business model for such financial assets,is to hold the assets in order to collect contractual cash flows.-The contractual terms of the financial

136、asset give rise on specified dates to cash flows that are solely payments of principal and interest on the amount outstanding.A financial asset measured at amortized cost is initially recognized at fair value plus transaction costs directly attributable to the asset.After initial recognition,the car

137、rying amount of the financial asset measured at amortized cost is determined using the effective interest method,net of impairment loss,if necessary.Financial assets measured at fair value through other comprehensive income(“FVTOCI”)A financial asset measured at fair value through other comprehensiv

138、e income is recognized initially at fair value plus transaction costs directly attributable to the asset.After initial recognition,the asset is measured at fair value with changes in fair value included in other comprehensive income.Financial assets measured at fair value through profit or loss(“FVT

139、PL”)A financial asset measured at fair value through profit or loss is recognized initially at fair value with any associated transaction costs being recognized in profit or loss when incurred.Subsequently,the financial asset is re-measured at fair value,and a gain or loss is recognized in profit or

140、 loss in the reporting period in which it arises.The Company derecognizes a financial asset if the contractual rights to the cash flows from the asset expire,or the Company transfers substantially all the risks and rewards of ownership of the financial asset.Any interests in transferred financial as

141、sets that are created or retained by the Company are recognized as a separate asset or liability.Gains and losses on derecognition are generally recognized in profit or loss.However,gains and losses on derecognition of financial assets classified as FVTOCI remain within accumulated other comprehensi

142、ve income(loss).RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)15 3.MATERIAL ACCOUNTING POLICY INFORMATION(contd)o)Financial Instruments(contd)Financial Liabilities Financial liabilities are classified as amo

143、rtized cost,based on the purpose for which the liability was incurred.These liabilities are initially recognized at fair value net of any transaction costs directly attributable to the issuance of the instrument and subsequently carried at amortized cost using the effective interest rate method.This

144、 ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the statement of financial position.Interest expense in this context includes initial transaction costs and premiums payable on redemptions,as well as any interest or coup

145、on payable while the liability is outstanding.Accounts payables represent liabilities for goods and services provided to the Company prior to the end of the period which are unpaid.Accounts payable amounts are unsecured and are usually paid within forty-five days of recognition.The Company has made

146、the following designations of its financial instruments:Cash and cash equivalentsFVTPLEquity investmentsFVTOCIReceivablesAmortized costDepositsAmortized costAccounts payable and accrued liabilitiesAmortized costLease liabilityAmortized costp)Lease Liabilities The lease liability is measured at the p

147、resent value of the expected lease payments over the lease term,discounted at the implicit rate in the lease;if the rate cannot be determined,the incremental borrowing rate of the asset or asset grouping is used.The lease liability is increased for the passage of time and payments on the lease are o

148、ffset against the lease liability.The liability is subsequently re-measured when there is a change in the lease agreement,such as a change in future lease payments or if the Company decides to purchase,extend,or terminate the lease option.When the lease liability is re-measured,an adjustment is appl

149、ied to the carrying value of the ROU asset.q)Standards,Amendments and Interpretations Not Yet Effective The Company has reviewed upcoming policies and determined that none are expected to have a significant impact on the Companys consolidated financial statements.4.CRITICAL ACCOUNTING ESTIMATES AND

150、JUDGMENTSThe Company makes estimates and assumptions about the future that affect the reported amounts of assets and liabilities.Estimates and judgments are continually evaluated based on historical experience and other factors,including expectations of future events that are believed to be reasonab

151、le under the circumstances.In the future,actual experience may differ from these estimates and assumptions.The effect of a change in an accounting estimate is recognized prospectively by including it in profit or loss in the period of the change,if the change affects that period only,or in the perio

152、d of the change and future periods,if the change affects both.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)16 4.CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS(contd)The key areas of judgment applied in the pre

153、paration of the consolidated financial statements that could result in a material adjustment to the carrying amounts of assets and liabilities are as follows:a)The functional currency for each of the Companys subsidiaries is the currency of the primary economic environment in which the entity operat

154、es.Determination of the functional currency may involve certain judgments to determine the primary economic environment and the Company reconsiders functional currency of its entities if there is a change in events and conditions which determined the primary economic environment.b)The application of

155、 the Companys accounting policy for exploration and evaluation assets and royalty interests requires judgment in determining whether it is likely that future economic benefits will flow to the Company.If,after exploration and evaluation assets are capitalized,information becomes available suggesting

156、 that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount,the Company carries out an impairment test at the cash-generating unit or group of cash-generating units level in the year the new information becomes available.c)The determination of when receivables

157、are impaired requires significant judgment as to their collectability.d)The Company applies judgment in determining whether a lease contract contains an identified asset,whether they have the right to control the asset,and the lease term.The lease term is based on considering facts and circumstances

158、,both qualitative and quantitative,that can create an economic incentive to exercise renewal options.Management considers all facts and circumstances that create an economic incentive to exercise an extension option,or not to exercise a termination option.e)Although the Company has taken steps to id

159、entify any decommissioning liabilities related to mineral properties in which it has an interest,there may be unidentified decommissioning liabilities present.f)The assessment of the Companys ability to continue as a going concern to pay for its operating expenditures and meet its liabilities for th

160、e subsequent year involves significant judgment based on historical experiences and other factors including expectation of future events that are believed to be reasonable under the circumstances.The key estimates applied in the preparation of the consolidated financial statements that could result

161、in a material adjustment to the carrying amounts of assets and liabilities are as follows:a)To determine the recoverable amount of impaired assets,the Company estimates the higher of fair value less costs to sell and value in use.The actual results may vary and may cause significant adjustments to t

162、he Companys assets within the next financial year.During the year ended December 31,2023,the Company recorded write-offs of exploration and evaluation asset costs totaling$37,401 on the Maricela Project and$271,822 on the Tropico Project(Note 11).A value in use calculation was not applicable for the

163、se write-offs as the Company does not have any expected cash flows from using the properties at this stage of operations.In estimating the fair value less costs of disposal,management did not have observable or unobservable inputs to estimate the recoverable amount greater than$nil.As this valuation

164、 technique requires managements judgment and estimates of the recoverable amount,it is classified within Level 3 of the fair value hierarchy.b)In estimating the fair value of share-based payments,using the Black-Scholes option pricing model,management is required to make certain assumptions and esti

165、mates.Changes in assumptions used to estimate fair value could result in materially different results.c)The Company uses estimation in determining the incremental borrowing rate used to measure the lease liability.Where the rate implicit in the lease is not readily determinable,the discount rate of

166、the lease obligations is estimated using a discount rate similar to the Companys specific borrowing rate.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)17 5.CASH AND CASH EQUIVALENTS Cash and cash equivalents

167、 are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.The Company does not hold any deposits with maturities of greater than three months from the date of acquisition.Cash at banks and cash equivalents consisting of money market funds earn inte

168、rest at floating rates based on daily bank deposit rates.As at December 31,2023 and 2022,cash and cash equivalents is comprised of the following:2023 2022 Cash$700,844$823,705 Cash equivalents209,911596,409$910,755$1,420,114 6.EQUITY INVESTMENTS As of December 31,2023 and 2022,equity investments con

169、sisted of the following:Number of common shares held as at December 31:2023 2022 Electrum Discovery Corp.(“Electrum”)(formerly Medgold Resources Corp.)632,906632,906Rackla Metals Inc.(“Rackla”)3,973,2753,973,275Volcanic Gold Mines Inc.(“Volcanic”)830,412 830,412 Coloured TiesElectrum Metallum Rackla

170、 Volcanic Warrior Total Balance,December 31,2021$38,056$253,163$1,500$-$431,814$15,196$739,729Disposition of shares(135,140)-(267,500)-(50,000)(452,640)Reclassification from investment in associate-1,350,914-1,350,914Net change in fair value recordedin other comprehensive loss97,084(202,530)266,000

171、317,862(282,340)34,804 230,880 Balance,December 31,2022-50,633-1,668,776149,474-1,868,883Net change in fair value recordedin other comprehensive income-(933,720)74,737-(858,983)Balance,December 31,2023$-$50,633$-$735,056$224,211$-$1,009,900Volcanic has one common director and Rackla has three common

172、 directors with the Company.All of the Companys equity investment companies are publicly listed companies as of December 31,2023 and 2022.Subsequent to December 31,2023,a one-for-sixteen share consolidation by Electrum reduced the number of Electrum shares held by the Company from 10,126,500 to 632,

173、906.During the year ended December 31,2022,the Companys holding of 3,973,275 Rackla shares was reclassified from an investment in associate to an equity investment(Note 10).The fair value of the 3,973,275 Rackla shares at the time of reclassification was$1,350,914.During the year ended December 31,2

174、023,there were no equity investment transactions.During the year ended December 31,2022,the Company completed the following transactions:i)Sold 20,000 common shares of Metallum Resources Inc.(“Metallum”)for net proceeds of$1,575 and recorded a loss of$265,925 on the sale in other comprehensive incom

175、e.ii)Sold 233,781 common shares of Warrior Gold Inc.(“Warrior”)for net proceeds of$15,936 and recorded a loss of$34,064 on the sale in other comprehensive income.iii)Sold 107,200 common shares of Coloured Ties Capital Inc.(“Coloured Ties”)for net proceeds of$33,664 and recorded a loss of$101,476 on

176、the sale in other comprehensive income.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)18 7.RECEIVABLES December 31,2023 December 31,2022 Royalty receivable$784,180$784,180 Provision for impairment(Note 11 Gua

177、temala Tambor Project)(784,180)(784,180)Royalty revenue receivable,net-Sales taxes190,28658,495 Other receivables(Note 16)-21,688$190,286$80,183 The provision for impairment of the royalty receivable was included in profit or loss during the 2016 fiscal year.Uncollectable amounts included in the pro

178、vision are written off against the provision when there is no expectation of recovery.The royalty revenue receivable remains uncollected as of December 31,2023 as the Company has allowed Kappes,Cassiday&Associates(“KCA”)to defer payment of the balance while KCA awaits a ruling on an arbitration hear

179、ing to overturn the suspension of operations of its mine-site and seek compensation from the Guatemalan authorities(Note 11).8.PROPERTY AND EQUIPMENT TrucksComputer equipmentFurniture and equipmentGeophysical equipmentField equipmentTotalCost Balance,December 31,2021$37,457$257,144$55,313$84,882$4,6

180、65$439,461Additions-669-669Disposals-(252,068)-(28,278)-(280,346)Balance,December 31,202237,4575,745 55,313 56,604 4,665 159,784 Additions38,682 1,044-5,191 44,917Balance,December 31,2023$76,139$6,789$55,313$56,604$9,856$204,701 Accumulated amortization Balance,December 31,2021$37,457$253,120$55,313

181、$80,373$4,665$430,928Charge for year-1,330-902-2,232Disposals-(252,068)-(28,278)-(280,346)Balance,December 31,202237,4572,38255,31352,997 4,665152,814 Charge for year6,6131,296-7212098,839Balance,December 31,2023$44,070$3,678$55,313$53,718$4,874$161,653 Carrying amounts At December 31,2022$-$3,363$-

182、$3,607$-$6,970 At December 31,2023$32,069$3,111$-$2,886$4,982$43,048 During the 2022 fiscal year,the Company disposed of a fully amortized vehicle for proceeds of$12,440 and recorded a gain on disposal of$12,440.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended Decem

183、ber 31,2023 and 2022(Expressed in Canadian Dollars)19 9.RIGHT-OF-USE ASSET AND LEASE LIABILITYThe Company has a lease agreement for its headquarter office space in Vancouver,British Columbia.The continuity of the ROU asset and lease liability for the years ended December 31,2023 and 2022 is as follo

184、ws:Right-of-use asset Value of right-of-use asset recognized as at December 31,2021$181,564Depreciation(60,467)Value of right-of-use asset as at December 31,2022121,097Depreciation(60,467)Value of right-of-use asset as at December 31,2023$60,630 Lease liability Lease liability recognized as of Decem

185、ber 31,2021$218,891Lease payments(82,418)Lease interest18,158 Lease liability recognized as of December 31,2022154,631Lease payments(84,335)Lease interest11,646Lease liability recognized as of December 31,2023$81,942 Lease liability Current portion$81,942Long-term portion-$81,942 10.INVESTMENT IN AS

186、SOCIATE Rackla Rackla previously met the definition of an associate and was equity accounted for in the consolidated financial statements.During the 2022 fiscal year,Rackla no longer met the definition of an associate when its interest in Rackla was further diluted to a level significantly below 20%

187、on December 22,2022 when Rackla issued 12,615,000 common shares by way of private placements to different parties.Therefore,the Companys investment in Rackla was reclassified as an equity investment.Upon discontinuing the use of the equity method,an investment,if a financial asset,is to be measured

188、at fair value and the difference between the fair value and the carrying value of the investment recognized in profit or loss.The fair value of the investment in Rackla at the time of reclassification was$1,350,914 and its carrying cost was$1.As a result,a gain of$1,350,913 was recognized in the con

189、solidated statement of income for the year ended December 31,2022.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)20 11.MINERAL PROPERTY AND ROYALTY INTERESTS Acquisition costs Mexico Guatemala Total Balance,D

190、ecember 31,2021$126,666$1$126,667Additions cash940,682-940,682Acquisition costs recovered(1,029,947)-(1,029,947)Balance,December 31,202237,4011 37,402Additions cash726,641-726,641Acquisition costs recovered(454,819)-(454,819)Write-off of acquisition costs(309,223)-(309,223)Balance,December 31,2023$-

191、$1$1 Mexico i)Amalia Project(including the Palmillas Property)In 2017,the Company signed a binding agreement with a private individual to option the Amalia Project in the State of Chihuahua,Mexico.In 2022,the Company earned a 100%interest in the Amalia Project having made staged payments over a peri

192、od of five years totaling US$850,000 cash,all of which was paid prior to the current year,and issuing US$15,000 in shares of the Company prior to the 2021 fiscal year.In 2018,the Company entered into an option agreement with Pan American Silver Corp.(“Pan American”)whereby Pan American earned in 202

193、2 an initial 65%interest in the Amalia Project and the Palmillas Property(described below)having made cash payments to the Company totaling US$1.5 million and expending US$2.0 million on exploration over four years.Pan American may earn an additional 10%by advancing the property to a preliminary fea

194、sibility stage.In November 2019,the Company signed a binding agreement with a private family to option the Palmillas Property that adjoins the Amalia Project in the State of Chihuahua,Mexico.The Company can earn a 100%interest in the Palmillas Property by completing staged payments over a period of

195、five years totaling US$350,000,of which the final payment is US$200,000 at the end of five years.As of December 31,2023,cash payments totaling$163,131(US$125,000)have been paid,of which$59,359(US$45,000)was paid during the current year and recorded as an acquisition cost.If the Company exercises the

196、 option,the owners will retain a 1%NSR royalty.Pursuant to the Companys option agreement with Pan American on the Amalia Project,Pan American elected during the 2020 fiscal year to pay the Companys acquisition costs of the Palmillas Property and add the property to the Amalia Project.During the year

197、 ended December 31,2023,the Company received$59,359(US$45,000)from Pan American to reimburse the Company for Palmillas option payments made to the Palmillas Property owners(2022:$45,910/US$35,000).Legal Proceeding During the year ended December 31,2023,the Company filed a legal demand with a Federal

198、 Court in Mexico to obtain title to the Amalia 4 concession,a component of the Amalia Project which had been in the application stage.The mining authority of Chihuahua has processed and approved the submission without fault and passed the license to the Mexico Mining Directorate proposing title issu

199、ance.The regulated time for the mining authority to comment and request revision has passed and granting of title is a legal requirement under the mining law.The legal demand filed by the Company is to enforce the granting of title and the legal process is still on-going.RADIUS GOLD INC.NOTES TO THE

200、 CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)21 11.MINERAL PROPERTY AND ROYALTY INTERESTS(contd)Mexico(contd)ii)Plata Verde Project In 2020,the Company entered into option agreements,as amended,with local concession holders to acquire

201、 the Plata Verde Project which consists of the Don Benja and Don Jose concessions located in the State of Chihuahua,Mexico.The Company can earn a 100%interest in the Don Benja concession by making staged payments to the concession owner totaling US$801,000 over a period of five years ending on Octob

202、er 22,2025,of which the two final payments are US$200,000 at the end of the fourth year and US$200,000 at the end of the fifth year.As of December 31,2023,the Company has made payments totaling$534,905(US$401,000),of which$338,170(US$250,000)was paid during the current year.If the Company exercises

203、the option,the concession holder will retain a 1%NSR royalty which the Company can buy back for US$1,000,000.The Company can earn a 100%interest in the Don Jose concession by making staged payments to the concession owner totaling US$500,000 over a period of four years ending on May 15,2026,of which

204、 the final payment is US$185,000 at the end of the fourth year.As of December 31,2023,the Company has made payments totaling$101,662(US$75,000),of which$57,289(US$42,000)was paid during the current year.If the Company exercises the option,the concession holder will retain a 1%NSR royalty which the C

205、ompany can buy back for US$600,000.During the 2022 fiscal year,the Company entered into an exclusivity agreement with Fresnillo plc(“Fresnillo”)whereby Fresnillo had the exclusive right until April 7,2023 to negotiate with the Company the terms of an option to earn a 70%interest in the Plata Verde P

206、roject.During the year ended December 31,2023,the exclusivity period was extended to July 7,2023 and then extended further to January 7,2024.Subsequent to December 31,2023,an option agreement was signed which replaces the exclusivity agreement and provides for an initial payment from Fresnillo of US

207、$250,000 to mobilize drilling and field teams and a second payment of US$250,000 due when drilling commences.Pursuant to this agreement,Fresnillo was to make payments totaling US$695,300 to the Company as follows:i)US$100,000 upon signing the exclusivity agreement;ii)US$357,000 to reimburse underlyi

208、ng property option payments;iii)US$103,600 to clear historic back taxes and return the property to full legal compliance;and iv)US$134,700 for property taxes and investment costs at the project.As of December 31,2023,the full amount of$931,489(US$695,300)has been received,of which$501,661(US$371,300

209、)was received by the Company during the year ended December 31,2023,with$395,459 being recorded as a recovery against acquisition costs and$106,202 recorded as a gain from mineral property option agreements.During the year ended December 31,2022,the Company received a total of$429,828(US$324,000),of

210、 which$241,108 was recorded as a recovery against accumulated capitalized mineral property costs for the Plata Verde Project,$157,530 was recorded as a cost recovery against exploration expenditures,$34,575 was recorded as a gain from mineral property option agreements,and$3,385 recorded as a foreig

211、n exchange loss for the year ended December 31,2022.iii)Maricela Project During the 2021 fiscal year,the Company entered into an option agreement to acquire the Maricela group of properties located in the State of Sonora that covers several mineral concessions.The Company could have earned a 100%int

212、erest in the Maricela Project by making staged payments to the property owner totaling US$1,250,000 over three years with a final payment of US$1,060,000 due at the end of year three.A total of US$30,000($37,401)was paid and recorded as an acquisition cost during the year 2021 fiscal year.The Compan

213、y decided to terminate the option agreement and as a result,the acquisition cost of$37,401 was written off during the current year.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)22 11.MINERAL PROPERTY AND ROY

214、ALTY INTERESTS(contd)Mexico(contd)iv)Tropico Project In March 2023,the Company entered into an option agreement with local property owners to acquire the Tropico Project located within the Fresnillo mining district in the State of Zacatecas,Mexico.The Company had the option to earn a 100%interest in

215、 the Tropico Project by making a US$200,000 payment upon signing of the agreement(paid),further payments totaling US$200,000 that can be paid in six monthly instalments over a period of forty-two months,starting with US$25,000 at month twelve in order to maintain the option,and a payment of US$5,000

216、,000 at month forty-eight.The option also called for potential additional milestone payments to the property owners.The initial option payment of US$200,000 was recorded as an acquisition cost of$271,822 during the year ended December 31,2023.Subsequent to December 31,2023,the Company decided to rel

217、inquish the option and as a result,the acquisition cost of$271,822 was written off during the current year.v)Rambler Project During the 2019 fiscal year,the Company staked a property called the Rambler Project,located in the State of Chihuahua.vi)Lithium Brine Project The Company holds a mineral con

218、cession application for a lithium brine project located in the State of Coahuila,Mexico.The Company expects this application to be abandoned due to the nationalization of lithium in Mexico.Guatemala i)Guatemala Properties The Companys 100%owned land holdings in southeast Guatemala as at December 31,

219、2023 consist of 45 concessions(two granted exploration licences,forty exploration applications,two exploitation applications,and one reconnaissance application)filed with the Guatemala Ministry of Energy and Mines.The two exploitation applications were filed in order to convert one previously grante

220、d exploration licence to exploitation;until the exploitation licences are granted,the granted exploration licence remains in place.During the year ended December 31,2023,the Company was granted the Cirilo I exploration licence in the Motagua Norte project area of Guatemala.In May 2020,the Company si

221、gned an agreement whereby it granted to Volcanic the exclusive option(the“Option”)to acquire a 60%interest in the Companys granted exploration licence(known as the Holly and Banderas gold-silver properties)(the“Properties”).In September 2023,the Option was modified to include the Motagua Norte proje

222、ct in substitution for the Banderas project.Management determined the projects were of equivalent value and accordingly no gain or loss was recognized on this substitution.The original earn-in requirement to spend US$7.0 million in exploration of the properties remains unchanged.Under the modified o

223、ption agreement,Volcanic has an exclusive option to earn a 60%interest in the Companys Holly and Motagua Norte properties by spending US$7.0 million on exploration of the properties,of which US$1,764,778 is required to be spent on Motagua Norte.Expenditures made by Volcanic on exploration of the Ban

224、deras property are credited towards the US$7.0 million expenditure requirement.In December 2023,the Company entered into a surface rights option agreement(the“Surface Rights Option”)with the owner of certain lands comprising a portion of the Motagua Norte project,and the Company granted to Volcanic

225、the option to acquire a 60%interest in such lands by assuming the option payments due to the landowner.At that time,the Company paid$204,873(US$150,000)as an initial option payment and was reimbursed for the cost by Volcanic.Pursuant to the terms of these agreements and the Mineral Rights Option des

226、cribed above,Volcanic can acquire a 60%interest in the minerals rights to the Holly and Motagua Norte Projects and 60%of a portion of the surface rights to Motagua Norte.To exercise the Surface Rights Option,the Company must make staged payments totaling US$2.5 million over 24 months,with the final

227、payment of US$2.0 million being due on the twenty-fourth month.Any reimbursements of such payments made by Volcanic will be credited toward the US$7.0 million required to exercise the Mineral Rights Option.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31

228、,2023 and 2022(Expressed in Canadian Dollars)23 11.MINERAL PROPERTY AND ROYALTY INTERESTS(contd)Guatemala(contd)i)Guatemala Properties(contd)If the Mineral Rights Option and the Surface Rights Option are exercised,Volcanic and the Company will form a 60/40 joint venture ownership of said mineral rig

229、hts and surface rights,and the Company will contribute to the joint venture its 40%share of the Surface Rights Option payments made by Volcanic which are over and above the US$7.0 million to be incurred by Volcanic in order to exercise the Mineral Rights Option.ii)Tambor Project Royalty In 2012,the

230、Company sold its interest in its subsidiary,Exploraciones Mineras de Guatemala S.A.,which holds the Tambor gold project,to KCA,giving KCA a 100%interest in the project.KCA agreed to make royalty payments to the Company,upon commercial production,based on the then price of gold and the number of ounc

231、es produced from the property.Commercial production commenced in December 2014.In May 2016,KCA informed the Company that mining operations were suspended by the Supreme Court of Guatemala due to a lack of consultation by the Guatemalan Ministry of Mines with local indigenous people when the mine was

232、 permitted in 2011.To date,the Supreme Court has not made a decision on when the mine may re-open.There was no royalty income recognized for the years ended December 31,2023 and 2022.As at December 31,2023,all gold sales subject to the Companys royalty had been final settled and the balance that rem

233、ained unpaid to the Company was$784,180.Due to the uncertainty as to when the mine may re-open and when the amount owing by KCA to the Company will be paid,a provision of$784,180 against the receivable amount was charged to operations in 2016.12.COMMITMENTS The Company has entered into an operating

234、lease agreement for its office premises that expires on December 31,2024.The Company also rents space to other companies related by common directors and officers on a month-to-month basis,the amounts of which are netted against rental expense;however,there are no commitments from these companies and

235、 thus the amounts presented below are the gross commitments.The remaining commitment under the lease for the 2024 fiscal year is$133,869.For the year ended December 31,2023,the Company received a total of$96,775(2022:$99,875)from those companies which share office space with the Company.RADIUS GOLD

236、INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)24 13.SHARE CAPITAL AND RESERVES a)Common Shares The Company is authorized to issue an unlimited number of common shares without par value.During the year ended December 31,

237、2023,the following share capital activity occurred:i)On May 29,2023,the Company closed a private placement of 11,149,983 units at$0.175 per unit for gross proceeds of$1,951,247.Each unit consists of one common share and one full share purchase warrant entitling the holder to purchase an additional c

238、ommon share exercisable for two years at a price of$0.35.Of the total gross proceeds,$1,951,247 was allocated to share capital and$Nil to warrants.In connection with this financing,the Company paid finders fees totaling$39,627 cash and issued a total of 226,442 warrants which have the same terms as

239、the unit warrants.The fair value of the finders fee warrants was$8,935 and was recorded as share issuance costs and an offset to other equity reserve.The fair value of each finders fee warrant has been estimated as of the date of the issuance using the Black-Scholes pricing model with the following

240、assumptions:risk-free interest rate of 4.23%,dividend yield of 0%,volatility of 67%,and expected life of two years.Other share issuance costs associated with this financing totaled$20,848;ii)The Company issued 500,000 common shares with a value of$120,625 to the Chief Executive Officer of the Compan

241、y pursuant to the terms of a shares for services agreement dated January 1,2021;and iii)A total of 200,000 stock options were exercised for proceeds of$30,000.The Company reallocated the fair value of these options previously recorded in the amount of$15,440 from other equity reserve to share capita

242、l.During the year ended December 31,2022,a total of 25,000 stock options were exercised for proceeds of$3,750.The Company reallocated the fair value of these options previously recorded in the amount of$1,930 from other equity reserve to share capital.b)Share Purchase Warrants The following is a sum

243、mary of changes in warrants during the year ended December 31,2023:Number of Warrants Weighted Average Exercise Price Balance,December 31,2021 and 2022-Issued11,376,425$0.35 Balance,December 31,2023 11,376,425$0.35 As at December 31,2023,there were 11,376,425 share purchase warrants outstanding with

244、 an exercise price of$0.35 per share and May 28,2025 expiry date.14.SHARE-BASED PAYMENTS a)Option Plan Details The Company has a formal stock option plan in accordance with the policies of the TSX-V under which it is authorized to grant options up to 10%of its outstanding shares to officers,director

245、s,employees,and consultants.The exercise price of each option is not less than the closing market price of the Companys stock on the trading day prior to the date of grant.Options granted to investor relations personnel vest in accordance with TSX-V regulations.The options are for a maximum term of

246、ten years.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)25 14.SHARE-BASED PAYMENTS(contd)a)Option Plan Details(contd)The following is a summary of changes in options for the year ended December 31,2023:Durin

247、g the yearGrant dateExpiry dateExercise priceOpening balanceGrantedExercisedExpired/forfeitedClosing balanceVested and exercisableOct 19,2016Oct 18,2026$0.15 1,230,000-1,230,000 1,230,000 May 22,2018May 21,2028$0.15 1,465,000-(200,000)-1,265,0001,265,000Nov 5,2018Nov 4,2028$0.1575,000-75,00075,000Oc

248、t 8,2019Oct 7,2029$0.25850,000-850,000850,000Mar 16,2020Mar 15,2030$0.15280,000-280,000280,000Dec 9,2020Dec 8,2030$0.2750,000-50,00050,000Feb 11,2021Feb 10,2031$0.3450,000-50,00050,000Mar 4,2021Mar 3,2031$0.2450,000-50,00050,000Oct 26,2021Oct 25,2031$0.34300,000-300,000300,000Jan 10,2023Jan 9,2033$0

249、.20-75,000-75,00075,000Jun 7,2023Jun 6,2033$0.18-2,070,000-2,070,0002,070,000Sep 19,2023Sep 18,2033$0.23-50,000-50,00050,0004,350,000 2,195,000(200,000)-6,345,000 6,345,000Weighted average exercise price$0.19$0.18$0.15-$0.19$0.19 The weighted average stock price on the date of exercise for options e

250、xercised during the year ended December 31,2023 was$0.19 per share(2022:$0.15).The following is a summary of changes in options for the year ended December 31,2022:During the yearGrant dateExpiry dateExercise priceOpening balanceGrantedExercisedExpired/forfeitedClosing balanceVested and exercisableD

251、ec 13,2012Dec 12,2022$0.20 1,495,000-(1,495,000)-Oct 19,2016Oct 18,2026$0.15 1,230,000-1,230,000 1,230,000 May 22,2018May 21,2028$0.15 1,490,000-(25,000)-1,465,0001,465,000Nov 5,2018Nov 4,2028$0.1575,000-75,00075,000Oct 8,2019Oct 7,2029$0.25850,000-850,000850,000Mar 16,2020Mar 15,2030$0.15280,000-28

252、0,000280,000Dec 9,2020Dec 8,2030$0.2750,000-50,00050,000Feb 11,2021Feb 10,2031$0.3450,000-50,00050,000Mar 4,2021Mar 3,2031$0.2450,000-50,00050,000Oct 26,2021Oct 25,2031$0.34300,000-300,000300,0005,870,000-(25,000)(1,495,000)4,350,000 4,350,000 Weighted average exercise price$0.19-$0.15$0.20$0.19$0.1

253、9RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)26 14.SHARE-BASED PAYMENTS(contd)b)Fair Value of Options Granted During the Year The weighted average fair value at grant date of options granted during the yea

254、r ended December 31,2023 was$0.14 per option.There were no options granted during the year ended December 31,2022.The weighted average remaining contractual life of the options outstanding at December 31,2023 is 6.32 years(2022:5.67 years).Options Issued to EmployeesThe fair value at grant date is d

255、etermined using a Black-Scholes option pricing model that takes into account the exercise price,the term of the option,the impact of dilution,the share price at grant date,the expected price volatility of the underlying share,the expected dividend yield and the risk-free interest rate for the term o

256、f the option.Options Issued to Non-EmployeesOptions issued to non-employees are measured based on the fair value of the goods or services received,at the date of receiving those goods or services.If the fair value of the goods or services received cannot be estimated reliably,the options are measure

257、d by determining the fair value of the options granted using the Black-Scholes option pricing model.The model inputs for options granted during the year ended December 31,2023 included:Grant date Expiry date Share price at grant date Exercise price Risk-free interest rate Expected life Volatility fa

258、ctor Dividend yield Jan 10,2023Jan 9,2033$0.21$0.20 3.10%10 years 75%0%Jun 7,2023Jun 6,2033$0.18$0.18 2.18%10 years 75%0%Sep 19,2023Sep 18,2033$0.28$0.23 3.82%10 years 75%0%The expected volatility is based on the historical volatility(based on the remaining contractual life of the options),adjusted

259、for any expected changes to future volatility due to publicly available information.The risk-free rate of return is the yield on a zero-coupon Canadian Treasury Bill of a term consistent with the assumed option life.The expected average option term is the average expected period to exercise,based on

260、 the historical activity patterns for each individually vesting tranche.Option pricing models require the input of highly subjective assumptions,including the expected price volatility.Changes in these assumptions can materially affect the fair value estimate and,therefore,the existing models do not

261、 necessarily provide a reliable single measure of the fair value of the Companys stock options.c)Expenses Arising from Share-based Payment Transactions Total expenses arising from the share-based payment transactions recognized during the year ended December 31,2023 as part of share-based compensati

262、on expense were$308,631(2022:$46,875)(Note 16).RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)27 15.INCOME TAXESTaxation in the Company and its subsidiaries operational jurisdictions is calculated at the rate

263、s prevailing in the respective jurisdictions.The difference between tax expense for the year and the expected income taxes based on the statutory tax rate arises as follows:December 31,2023 December 31,2022 Income(loss)before income taxes$(2,637,656)$1,076,154Tax expense(recovery)based on the Canadi

264、an statutory rate of 27%(712,000)291,000Items not deductible for tax purposes86,000(577,000)Different tax rates in other jurisdictions(45,000)18,000Under provided in prior years718,000237,000Changes in unrecognized deferred tax assets (47,000)92,000Total income tax expense/(recovery)$-$61,000 The Co

265、mpany incurred income tax expense of$Nil(2022:$61,254)during the year,which is included in exploration expenditures in the consolidated statements of income(loss)and comprehensive income(loss).The tax rates represent the federal statutory rate applicable for the 2023 taxation year:0%for Cayman Islan

266、ds,27%for the United States,30%for Mexico,and 25%for Guatemala.No deferred tax asset has been recognized in respect of the following losses and temporary differences as it is not considered probable that sufficient future taxable profit will allow the deferred tax asset to be recovered:December 31,2

267、023 December 31,2022 Loss carry forwards$2,710,000$2,526,000Property and equipment68,00049,000Lease liability 22,00042,000Mineral properties2,135,0002,124,000Available-for-sale investments497,000873,000Other deductible temporary differences1,168,000663,000Unrecognized tax assets(6,600,000)(6,277,000

268、)$-$-As at December 31,2023,the Company has estimated non-capital losses of$8,704,000(2022:$8,633,000)for Canadian income tax purposes and$1,199,000(2022:$650,000)for Mexico income tax purposes that may be carried forward to reduce taxable income derived in future years.Non-capital Canadian tax loss

269、es expire in various amounts from 2026 to 2043.Non-capital Mexico tax losses expire in various amounts until 2033.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)28 16.RELATED PARTY TRANSACTIONSThe Company had

270、 transactions during the years ended December 31,2023 and 2022 with related parties who consisted of directors,officers,and the following companies with common directors:Related Party Nature of Transactions Mill Street Services Ltd.(“Mill Street”)Management feesGold Group Management Inc.(“Gold Group

271、”)Shared general and administrative expensesVolcanicInvestment and exploration supportRackla Investment and exploration supportIn addition to related party transactions disclosed elsewhere in the consolidated financial statements,the Company incurred the following expenditures charged by non-key man

272、agement officers and companies which have common directors with the Company in the years ended December 31,2023 and 2022:2023 2022 General and administrative expenses:Salaries and benefits$24,627$12,720 Exploration expenditures:Salaries and benefits17,85917,224$42,486$29,944 The Company reimburses G

273、old Group,a company controlled by Simon Ridgway,a Director of the Company,for shared administrative costs and other business-related expenses paid by Gold Group on behalf of the Company.During the years ended December 31,2023 and 2022,the Company reimbursed Gold Group the following:2023 2022 General

274、 and administrative expenses:Office and miscellaneous$52,018$37,743 Shareholder communications26,85114,238 Salaries and benefits160,787 144,496 Transfer agent and regulatory fees7,3093,169 Travel and accommodation24,71411,514$271,679$211,160 Exploration expenditures$4,062$670 Gold Group salaries and

275、 benefits costs for the years ended December 31,2023 include those for the Chief Financial Officer,Vice President Corporate Development,and Corporate Secretary(2022:includes those for the Chief Financial Officer and the Corporate Secretary).During the year ended December 31,2023,the Company charged$

276、Nil(2022:$4,795)to Volcanic,a company which has a common director with the Company,for exploration costs incurred on behalf of Volcanic and relating to the option agreement between the two parties and Volcanic charged$38,830(2022:$38,083)to the Company for shared exploration costs.During the year en

277、ded December 31,2023,the Company charged$Nil(2022:$27,832)to Rackla,a company which has three common directors with the Company,for shared exploration personnel costs.Receivables include an amount of$Nil(2022:$7,007)owed from Rackla.Prepaid expenses and deposits include an amount of$4,153(2022:$5,85

278、0)paid to Gold Group for shared office and administrative services.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)29 16.RELATED PARTY TRANSACTIONS(contd)Long-term deposits include an amount of$60,000(2022:$60

279、,000)paid to Gold Group as a deposit on the shared office and administrative services agreement.Accounts payable and accrued liabilities include$9,546(2022:$17,927)payable to Gold Group for shared administrative costs,$7,792(2022:$571)to Bruce Smith,the Chief Executive Officer of the Company,for man

280、agement fees and expense reimbursement,and$9,594(2022:$9,556)payable to Volcanic for shared exploration costs.Key management compensation Key management personnel are persons responsible for planning,directing,and controlling the activities of an entity,and include certain directors and officers.Key

281、 management compensation comprises:2023 2022 Geological fees included in exploration expenditures$150,500$156,000Management fees64,00066,000Salaries and benefits*70,88932,610 Share-based payments value of stock options granted and vested99,891-Share-based payments fair value of shares to be issued-4

282、6,875$385,280$301,485 *Included in reimbursements to Gold Group Key management compensation includes management and geological fees paid to Mill Street,a company controlled by Simon Ridgway,a Director of the Company.During the year ended December 31,2023,the Company issued 500,000 common shares with

283、 a value of$120,625 to the Chief Executive Officer of the Company per the terms of a shares for services agreement dated January 1,2021.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)30 17.SEGMENTED INFORMATI

284、ONOperating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker,or decision-making group,in deciding how to allocate resources and in assessing performance.All of the Companys op

285、erations are within the mining sector relating to mineral exploration.Due to the geographic and political diversity,the Companys exploration operations are decentralized whereby exploration managers are responsible for business results and regional corporate offices provide support to the exploratio

286、n programs in addressing local and regional issues.The Companys operations are therefore segmented on a district basis.The Companys assets were located in Canada,Guatemala,Mexico,and Cayman Islands.Details of identifiable assets by geographic segments are as follows:Year ended December 31,2023Canada

287、GuatemalaMexicoOtherConsolidatedExploration expenditures$-$52,396$1,482,748$37,000$1,572,144Mineral property acquisition costs written-off-309,223-309,223Gain from mineral property option agreements-106,202-106,202Investment income13,502-13,502Amortization1,544-7,295-8,839Depreciation on right-of-us

288、e asset60,467-60,467Interest expense on lease liability11,646-11,646Net loss(797,820)(52,396)(1,742,124)(45,316)(2,637,656)Capital expenditures*-771,558-771,558Year ended December 31,2022CanadaGuatemalaMexicoOtherConsolidatedExploration expenditures$-$81,466$545,091$105,583$732,140Gain on reclassifi

289、cation as equity investment1,350,913-1,350,913Gain from mineral property option agreements-894,097-894,097Investment income9,954-9,954Amortization2,078-154-2,232Depreciation on right-of-use asset60,467-60,467Interest expense on lease liability18,158-18,158Net income(loss)929,891(81,466)342,675(114,9

290、46)1,076,154Capital expenditures*-941,351-941,351*Capital expenditures consist of additions of property and equipment and exploration and evaluation assetsAs at December 31,2023CanadaGuatemalaMexicoOtherConsolidatedTotal current assets$1,958,968$19,681$207,573$8,267$2,194,489Total non-current assets

291、128,436138,242-166,679Total assets$2,087,404$19,682$245,815$8,267$2,361,168Total liabilities$167,671$4,209$-$-$171,880As at December 31,2022CanadaGuatemalaMexicoOtherConsolidatedTotal current assets$3,219,772$23,775$170,723$8,377$3,422,647 Total non-current assets250,545 138,021-288,567 Total assets

292、$3,470,317$23,776$208,744$8,377$3,711,214 Total liabilities$251,924$1,376$1,390$-$254,690 RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)31 18.FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The Company is exposed

293、to the following financial risks:Market Risk Credit Risk Liquidity Risk In common with all other businesses,the Company is exposed to risks that arise from its use of financial instruments.This note describes the Companys objectives,policies,and processes for managing those risks and the methods use

294、d to measure them.Further quantitative information in respect of these risks is presented throughout these consolidated financial statements.General Objectives,Policies and ProcessesThe Board of Directors has overall responsibility for the determination of the Companys risk management objectives and

295、 policies and,whilst retaining ultimate responsibility for them,it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Companys finance function.The Board of Directors receive periodic reports through which

296、it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets.The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Companys competitiveness and flexibility.Further de

297、tails regarding these policies are set out below.a)Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.Market prices are comprised of three types of risk:foreign currency risk,interest rate risk,and

298、 equity price risk.Foreign Currency Risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.The Company is exposed to fluctuations in foreign currencies through its operations in foreign cou

299、ntries.The Company monitors this exposure but has no hedge positions.As at December 31,2023 and 2022,the Company is exposed to currency risk through the following financial assets and liabilities denominated in currencies other than the Canadian dollar:December 31,2023 December 31,2022 US Dollar Mex

300、ican Peso Guatemala Quetzal US Dollar Mexican Peso Guatemala Quetzal (CDN equivalent)(CDN equivalent)(CDN equivalent)(CDN equivalent)(CDN equivalent)(CDN equivalent)Cash$49,619$3,836$11,142$735,977$8,141$11,146 Receivables-183,569-14,681 51,634-Current liabilities(5,677)-(4,209)(15,867)-(1,376)$43,9

301、42$187,405$6,933$734,791$59,775$9,770 Based on the above net exposures at December 31,2023,a 10%depreciation or appreciation of the above currencies against the Canadian dollar would result in approximately a$23,800(2022:$80,400)increase or decrease in profit or loss,respectively.RADIUS GOLD INC.NOT

302、ES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)32 18.FINANCIAL INSTRUMENTS AND RISK MANAGEMENT(contd)General Objectives,Policies and Processes(contd)a)Market Risk(contd)Commodity Price Risk The Companys royalty revenue has been

303、 derived from a royalty interest that is based on the extraction and sale of gold.Factors beyond the control of the Company may affect the marketability of gold discovered or extracted.Gold prices have historically fluctuated widely.Consequently,the economic viability of the Companys royalty interes

304、t cannot be accurately predicted and may be adversely affected by fluctuations in gold prices.The Company has not engaged in any hedging activities.The Company is not exposed to commodity price risk as the Company has not earned any royalty revenue during the years ended December 31,2023 and 2022.In

305、terest Rate Risk Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates.The Company does not have any borrowings.Interest rate risk is limited to potential decreases on the interest rate offered on cash held with chartered Canadian financ

306、ial institutions.The Company considers this risk to be limited as it holds no assets or liabilities subject to variable rates of interest.Equity Price Risk Equity price risk is the uncertainty associated with the valuation of assets arising from changes in equity markets.The Companys equity investme

307、nts consisting of common shares are exposed to significant equity price risk due to the potentially volatile and speculative nature of the businesses in which the investments are held.The Companys equity investments are monitored by the Board with decisions on sale or exercise taken by Management.A

308、10%(2022:10%)decrease in fair value of the shares would result in an approximate$101,000(2022:$187,000)decrease in comprehensive income and shareholders equity.b)Credit Risk Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contrac

309、tual obligations.The Companys credit risk is primarily attributable to its cash and cash equivalents,equity investments,and receivables.The Company limits exposure to credit risk by maintaining its cash and cash equivalents with large financial institutions.The Company does not have cash and cash eq

310、uivalents or equity investments that are invested in asset based commercial paper.For other receivables,the Company estimates,on a continuing basis,the probable losses and provides a provision for losses based on the estimated realizable value.c)Liquidity Risk Liquidity risk is the risk that the Com

311、pany will not be able to meet its financial obligations as they fall due.The Companys approach to managing liquidity risk is to provide reasonable assurance that it will have sufficient funds to meet liabilities when due.The Company manages its liquidity risk by forecasting cash flows required by op

312、erations and anticipated investing and financing activities.At December 31,2023,the Company had working capital of$2.02 million(2022:$3.3 million)available to apply against short-term business requirements.All of the Companys financial liabilities have contractual maturities of less than 45 days and

313、 are subject to normal trade terms with the exception of the Companys lease liability which matures based on the lease agreement(Note 12).Determination of Fair Value Fair values have been determined for measurement and/or disclosure purposes based on the following methods.When applicable,further inf

314、ormation about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.Management considers that due to their short-term nature the carrying amounts of financial assets and financial liabilities,which include cash and cash equivalents,receivables

315、,deposits,and accounts payables and accrued liabilities are assumed to approximate their fair values.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)33 18.FINANCIAL INSTRUMENTS AND RISK MANAGEMENT(contd)Fair V

316、alue Hierarchy Financial instruments that are measured subsequent to initial recognition at fair value are grouped in Levels 1 to 3 based on the degree to which the fair value is observable:Level 1Unadjusted quoted prices in active markets for identical assets or liabilities;Level 2 Inputs other tha

317、n quoted prices included in Level 1 that are observable for the asset or liability,either directly(i.e.,as prices)or indirectly(i.e.,derived from prices);andLevel 3 Inputs for the asset or liability that are not based on observable market data(unobservable inputs).The equity investments are based on

318、 quoted prices and are therefore considered to be Level 1.The lease liability and formerly held derivative instruments were based on inputs other than quoted prices and therefore considered to be Level 3.As of December 31,2023,there was no embedded derivative on royalty income receivables derived fr

319、om gold prices to include as a Level 2 measurement and therefore no fair value measurement was necessary.There were no transfers between Levels 1,2,or 3 during the years ended December 31,2023 and 2022.19.CAPITAL MANAGEMENT The Companys objectives when managing capital are to safeguard the Companys

320、ability to continue as a going concern in order to advance its mineral properties.In order to facilitate the management of its capital requirements,the Company prepares periodic budgets that are updated as necessary.The Company manages its capital structure and adjusts it to effectively support the

321、acquisition and exploration of mineral properties.The properties in which the Company currently has a direct or indirect interest are in the exploration or development stage.As such the Company is dependent on external financing to fund its activities.In order to carry out the planned exploration an

322、d pay for general administrative costs,the Company will spend its existing working capital and raise additional amounts as needed.The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential

323、 and if it has adequate financial resources to do so.Management reviews its capital management approach on an ongoing basis and believes that this approach,given the relative size of the Company,is reasonable.The Company monitors its cash,equity investments,common shares,and stock options as capital

324、.There were no changes in the Companys approach to capital management during the year ended December 31,2023.The Companys investment policy is to hold cash in interest bearing bank accounts and highly liquid short-term interest-bearing investments with maturities of one year or less and which can be

325、 liquidated at any time without penalties.Neither the Company nor any of its subsidiaries is subject to externally imposed capital requirements and does not have exposure to asset-backed commercial paper or similar products.The Company expects its current capital resources to be sufficient to cover

326、its corporate operating costs and carry out limited exploration programs for the next twelve months.Actual funding requirements may vary from those planned due to a number of factors,including future property option payments,potential property acquisitions and exploration activity.The Company will c

327、ontinue to seek to raise additional capital in the future and believes it will be able to do so,but recognizes the uncertainty attached thereto.20.SUPPLEMENTAL CASH FLOW INFORMATION No cash was paid for interest or taxes for the years ended December 31,2023 and 2022.There were no significant non-cas

328、h investing and financing transactions during the years ended December 31,2023 and 2022.RADIUS GOLD INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31,2023 and 2022(Expressed in Canadian Dollars)34 21.EVENTS AFTER THE REPORTING DATE Subsequent to December 31,2023,the

329、following event which has not been disclosed elsewhere in these consolidated financial statements has occurred:A total of 25,000 stock options with an exercise price of$0.15 per share and a ten-year life were granted.(the“Company”)MANAGEMENTS DISCUSSION AND ANALYSIS Year End Report December 31,2023

330、General This Managements Discussion and Analysis(“MD&A”)supplements,but does not form part of,the annual audited consolidated financial statements of the Company for the fiscal year ended December 31,2023.The following information,prepared as of April 25,2024,should be read in conjunction with the D

331、ecember 31,2023 consolidated financial statements.The Company reports its financial position,results of operations and cash flows in accordance with International Financial Reporting Standards.All amounts are expressed in Canadian dollars unless otherwise indicated.The Companys public filings,includ

332、ing its most recent unaudited and audited financial statements can be reviewed on SEDAR+at(www.sedarplus.ca).Forward Looking Information This MD&A contains certain statements which constitute forward-looking information within the meaning of applicable Canadian securities legislation(“Forward-lookin

333、g Statements”).All statements included herein,other than statements of historical fact,are Forward-looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward-looking Statements.The Forward-looking Statements in this MD&A include,without limitation,statements relatin