Avrupa Minerals Ltd 20-F for FY2025
Avrupa Minerals Ltd. (AVPMF)
About this 20-F
Avrupa Minerals Ltd filed this 20-F on May 26, 2026, covering the fiscal year ended December 31, 2025 (FY2025).
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
OR
For the fiscal year ended
OR
For the transition period from ____________ to __________
OR
Date of event requiring this shell company report ______________________
Commission file number:
(Exact name of Registrant as specified in its charter)
British Columbia,
(Jurisdiction of incorporation or organization)
(
Phone: 604-687-3520 Ext
(
Securities to be registered pursuant to Section 12(b) of the Act:
None
Securities to be registered pursuant to Section 12(g) of the Act:
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
Indicate the number of outstanding shares of each of the Company’s classes of capital or common stock as of the close of the period covered by the annual report.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨
If this report is an annual or a transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ¨
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 12 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past ninety days.
Check whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
1
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ¨ | Accelerated filer ¨ |
Smaller Reporting Company x | |
Emerging Growth Company |
|
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b). ¨
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP ¨ | by the International Accounting Standards Board x | Other ¨ |
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow: Item 17 ¨ Item 18 ¨
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
Page 1 of 113
Index to Exhibits on Page 78
2
Avrupa Minerals Ltd.
Form 20-F Annual Report
Table of Contents
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Item 9. | ||
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Item 11. | ||
Item 12. | Description of Other Securities Other Than Equity Securities | |
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| PART II |
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Item 13. | ||
Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds | |
Item 15. | ||
Item 16. | ||
Item 16A. | ||
Item 16B. | ||
Item 16C. | ||
Item 16D. | ||
Item 16E. | Purchase of Equity Securities by the Issuer and Affiliated Purchasers | |
Item 16F. | ||
Item 16G. | ||
Item 16H. | ||
Item 16I. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | |
Item 16J. | ||
Item 16K. | ||
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| PART III |
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Item 17. | ||
Item 18. | ||
Item 19. |
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METRIC EQUIVALENTS
For ease of reference, the following factors for converting metric measurements into imperial equivalents are provided:
To Convert from Metric | To Imperial | Multiply by |
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Hectares | Acres | 2.471 |
Meters | Feet (ft.) | 3.281 |
Kilometers (km) | Miles | 0.621 |
Tonnes | Tons (2000 pounds) | 1.102 |
Grams/tonne | Ounces (troy/ton) | 0.029 |
INTRODUCTION
Avrupa Minerals Ltd. (Avrupa or the “Company”) was incorporated on January 23, 2008 under the Business Corporations Act of British Columbia under the name Everclear Capital Ltd. The Company became a Capital Pool Corporation ("CPC") on September 2, 2008. On July 7, 2010, the Company changed its name and on July 13, 2010, the Company completed its qualifying transaction.
The Company qualifies as an emerging growth company as defined in the Jumpstart Our Business Startups Act. The Company will continue to qualify as an emerging growth company until such time as the Company produces more than US$1.235 billion in gross revenue, the Company issues more than US$1 billion in non-convertible debt within a three-year period, the Company’s market capitalization exceeds US $700 million, or more than five years elapse from the time of its initial public offering in the United States.As an emerging growth company, the Company is exempt from the requirements of section 404(b) of the Sarbanes-Oxley Act, meaning that the Company is exempt from the requirement to obtain an external audit of its internal controls over financial reporting.
BUSINESS OF AVRUPA MINERALS LTD.
Avrupa is a mineral company engaged in the acquisition and exploration of mineral properties.
There are no known proven reserves of minerals on Avrupa’s properties.All of the Company's properties are currently at the exploration stage. The Company does not have any commercially producing mines or sites, nor is the Company in the process of developing any commercial mines or sites.The Company has not reported any revenue from operations since incorporation.As such, Avrupa is defined as an “exploration-stage company”.
FINANCIAL AND OTHER INFORMATION
In this Registration Statement, unless otherwise specified, all dollar amounts are expressed in Canadian Dollars (“CDN$” or “$”).The Government of Canada permits a floating exchange rate to determine the value of the Canadian Dollar against the U.S. Dollar (US$).
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FORWARD-LOOKING STATEMENTS
Certain statements in this document constitute “forward-looking statements”. Some, but not all, forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend,” statements that an action or event “may,” “might,” “could,” “should,” or “will” be taken or occur, or other similar expressions. Although the Company has attempted to identify important factors that could cause actual results to differ materially from expected results, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Registrant, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; uncertainties and risks related to carrying on business in foreign countries; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters of the Registrant with certain other projects; the absence of dividends; currency fluctuations; competition; dilution; the volatility of the Registrant’s common share price and volume; and tax consequences to U.S. Shareholders. We are not obligated to keep our information current and revise any forward-looking statements because of new information, future events or otherwise.
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Part I
Item 1.Identity of Directors, Senior Management and Advisors
Not Applicable
Item 2.Offer Statistics and Expected Timetable
Not Applicable
Item 3.Key Information
As used within this Annual Report, the terms “Avrupa”, “the Company”, “Issuer” and “Registrant” refer collectively to Avrupa Minerals Ltd., its predecessors, subsidiaries and affiliates.
Table No. 1 sets forth the rate of exchange for the Canadian Dollar at the end of the five most recent annual periods December 31st, the average rates for the period, and the range of high and low rates for the period.
For purposes of this table, the rate of exchange means the noon buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York.The table sets forth the number of Canadian dollars required under that formula to buy one U.S. Dollar.The average rate means the average of the exchange rates on the last day of each month during the period.
Canadian Dollar/U.S. Dollar
Period | Average | High | Low | Close |
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Year Ended 12/31/25 | $ 1.40 | $ 1.46 | $ 1.36 | $ 1.37 |
Year Ended 12/31/24 | 1.37 | 1.44 | 1.33 | 1.44 |
Year Ended 12/31/23 | 1.35 | 1.39 | 1.31 | 1.32 |
Year Ended 12/31/22 | 1.30 | 1.39 | 1.24 | 1.35 |
Year Ended 12/31/21 | 1.26 | 1.29 | 1.20 | 1.28 |
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Three Months Ended 12/31/25 | $ 1.39 | $ 1.41 | $ 1.37 | $ 1.37 |
Three Months Ended 9/30/25 | 1.38 | 1.39 | 1.36 | 1.39 |
Three Months Ended 6/30/25 | 1.37 | 1.43 | 1.36 | 1.36 |
Three Months Ended 3/31/25 | 1.44 | 1.46 | 1.42 | 1.44 |
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Three Months Ended 12/31/24 | $ 1.41 | $ 1.44 | $ 1.35 | $ 1.44 |
Three Months Ended 9/30/24 | 1.36 | 1.39 | 1.35 | 1.35 |
Three Months Ended 6/30/24 | 1.37 | 1.38 | 1.35 | 1.37 |
Three Months Ended 3/31/24 | 1.35 | 1.36 | 1.33 | 1.35 |
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Three Months Ended 12/31/23 | $ 1.36 | $ 1.39 | $ 1.32 | $ 1.32 |
Three Months Ended 9/30/23 | 1.34 | 1.37 | 1.31 | 1.35 |
Three Months Ended 6/30/23 | 1.35 | 1.36 | 1.31 | 1.32 |
Three Months Ended 3/31/23 | 1.35 | 1.38 | 1.33 | 1.35 |
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December 2025 |
| $ 1.40 | $ 1.37 | $ 1.37 |
November 2025 |
| 1.41 | 1.40 | 1.40 |
October 2025 |
| 1.40 | 1.39 | 1.40 |
September 2025 |
| 1.39 | 1.37 | 1.39 |
August 2025 |
| 1.39 | 1.37 | 1.37 |
July 2025 |
| 1.38 | 1.36 | 1.38 |
The exchange rate was $1.37 on December 31, 2025, and $1.36 on April 30, 2026.
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Statement of Capitalization and Indebtedness
Not applicable.
Reasons for the offer and use of proceeds
Not applicable.
Risk Factors
An investment in the Common Shares of the Company must be considered speculative due to the nature of the Company’s business and the present stage of exploration and development of its non-producing mineral properties. In particular, the following risk factors apply:
Risks Associated with Mineral Exploration
The Company is engaged in the mineral exploration business, which is highly speculative and has certain inherent risks which could have a negative effect on the Company
Mineral exploration is a speculative business, characterized by a number of significant risks including, among other things, unprofitable efforts resulting not only from the failure to discover mineral deposits but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production.The marketability of minerals acquired or discovered by the Company may be affected by numerous factors which are beyond the control of the Company and which cannot be accurately predicted, such as market fluctuations, the proximity and capacity of milling facilities, mineral markets and processing equipment, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals, and environment protection, the combination of which factors may result in the Company not receiving an adequate return on investment capital.
All of the Company's mineral properties are at the exploration stage and all of the Company's exploration expenditures may be lost
The Company is at the exploration stage on all of its properties and substantial additional work and expenditures will be required in order to determine if any economic deposits occur on the Company’s properties. Mineral exploration is highly risky, and most exploration properties do not contain any economic deposits of minerals. If a property is determined to not contain any economic reserves of minerals, the entire amount spent on exploration will be lost.
The mineral industry is highly competitive
The Company will be required to compete in the future directly with other corporations that may have greater resources.Such corporations could outbid the Company for potential projects or produce minerals at lower costs which would have a negative effect on the Company’s operations.
Commodity prices may not support corporate profit
The resource industry in general is intensely competitive and there is no assurance that, even if commercial quantities of minerals are discovered and developed, a profitable market will exist for the sale of same.Factors beyond the control of the Company may affect the marketability of any minerals discovered.The price of natural resources are volatile over short periods of time, and is affected by numerous factors beyond the control of the Company, including international economic and political trends, expectations of inflation, currency exchange fluctuations, interest rates and global or regional consumption patterns, speculative activities and increased production. If the Company is unable to economically produce minerals from its projects, it would have a negative effect on the Company’s financial condition or require the Company to cease operations altogether.
The Company's mineral exploration activities are subject to substantial government regulatory requirements
The mineral projects in which the Company has an interest are located in Portugal, Finland, and Kosovo.The process for acquiring an interest in mineral concessions in these three countries is different from procedures for acquiring mining claims in Canada or the United States and involves certain risks not applicable in those jurisdictions.
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These countries are politically stable European jurisdictions governed by democratically-elected leaders. In each of these countries, the legal, tax, and administrative institutions for business activities are in place, and processes and procedures are established and understood.In Kosovo, the legal and administrative framework for the mining industry has been established over the past ten years, first by the United Nations Mission in Kosovo and followed-up and further developed by the Kosovo government.Specifically, a new mining law, established in 2010, exists, and the independent regulator and oversight mechanism is functioning properly.
In Portugal, the rights and obligations associated with mining concession are governed by Direcção-Geral de Energia e Geologia (“DGEG”).A complete application, including detail work plans to be carried out, minimum planned amount of investment, the means of financing, financial standing and ability of the applicant, detailed measurements to be used for environmental protection and evidence of advertising such in a county newspaper and the official gazette, is submitted to the DGEG.Before a decision is made by the DGEG, the DGEG might request clarification of the proposal and further supporting documents and information about the application as well as having a hearing of the consultation office.Once the application is approved, the DGEG will sign the administrative contract (mining concession) with the applicant as well as publishing an abstract in the official gazette.In order to keep a mining concession valid and in effect, it is necessary to pay an annual license fee as well as putting up bonds for the claims.
In Kosovo, Independent Commission of Mines and Minerals (“ICMM”) oversees the exploration license application process.Under Official Gazette of the Republic of Kosova/Pristina, No. 80/27, Law No 08/L – 163, Article 21, an exploration license can be applied for a parcel of land no greater than 100 square kilometers, with a three-year term.Extension periods can be granted upon reducing the parcel of land by 50%; each extension is for an additional two years and can be done three times.To maintain the licenses, the company is required to report by the end of a calendar year all work performed and provide ICMM the financial report.Environmental safety regulations are followed in accordance to the European standards.
In Finland, the Ministry of Employment and the Economy is responsible for overseeing mining and exploration activities under the Mining Act, which was issued in June 2011. Currently, an exploration permit is required to conduct most exploration activities, while a mining permit is required to exploit any mineral deposit. Annual exploration permit fees range from €20 per hectare in the permit’s first 4 years to €50 per hectare in year 11 and beyond. However, the government has recently proposed changes to the existing act which would grant greater control over mining operations to local areas while increasing license fees.
Mineral exploration and mining activities in Portugal, Kosovo and Finland may be affected in varying degrees by political instability and government regulations relating to the mining industry.Any changes in regulations or shifts in political conditions are beyond the control of the Company and may adversely affect its business.Future operations may be affected in varying degrees by government regulations with respect to restrictions on production, price controls, export controls, income taxes, expropriations of property, environmental legislation and mine safety.
Changes in these regulations or in their application are beyond the control of the Company and may adversely affect its operations, business and results of operations.The requirements to comply with these regulations may result in increased costs, as well as delays in obtaining the permits required to conduct operations. Failure to comply with the conditions set out in any permit or failure to comply with the applicable statutes and regulations may result in orders to cease or curtail operations or to install additional equipment.The Company may be required to compensate those suffering loss or damage by reason of its operating or exploration activities.
On the Federal, Provincial/Territorial and State level, the Company must comply with exploration permitting requirements which require sound operating and reclamation plans to be approved by the applicable government body prior to the start of exploration. Depending upon the type and extent of the exploration activities, the Company may be required to post reclamation bonds and/or assurances that the affected areas will be reclaimed. If the reclamation requires funds in addition to those already allocated, the Company could be forced to pay for the extra work and it could have a significant negative effect upon the Company’s financial position and operations.
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As the Company’s operations are primarily related to the exploration of our properties in these jurisdictions, many governmental regulations relating to mining activities are not yet application to the Company.
Our potential mining processing operations and exploration activities in these jurisdictions are subject to various laws governing land use, the protection of environment, prospecting, development, production, exports, taxes, labor standards, occupational health, mine safety and other matters.Such operations and exploration activities are also subject to substantial regulation under these laws by governmental agencies and may require that the Company obtain permits from various governmental agencies.The Company believes that it is in substantial compliance with all material laws and regulations which currently apply to the Company’s activities.There can be no assurance, however, that all permits which the Company may require for future operations will be obtainable on reasonable terms or that such laws and regulations would not have an adverse effect on any mining project which the Company might undertake.
Failure to comply with laws and regulations may result in orders being issued thereunder which may cause operations to cease or be curtailed or may require installation of additional equipment.Violators may be required to compensate those suffering loss or damage by reason of their mining activities and may be subject to fines or penal sanctions if convicted of an offense under such legislation.
Amendments to current laws and regulations governing operations and activities of mining companies or more stringent implementation thereof could have a material adverse impact on the Company or prevent development of the Company’s mining properties.
The jurisdictions that the Company has operations in have environmental legislation that requires that the mining concessionaire to obtain the authorization from the applicable environmental authorities to initiate any exploration or exploitation activity.Environmental legislation in these jurisdictions imposes potential liability on owners and/or operators of mining facilities which release hazardous substances into the environment and are required to carry out their operations using methods and techniques not liable to cause damage to the environment or the land-owner.
The Company’s title to its properties may be disputed by third parties which could result in the loss of title to its properties
The Company has only done a preliminary title survey of its exploration properties in accordance with industry standards. These procedures do not guarantee the Company’s title and therefore, in accordance with the laws of the jurisdictions in which these properties are situated, their existence and area could be in doubt. Unregistered agreements or transfers, or native land claims, may affect title.If title is disputed, the Company will have to defend its ownership through the courts, which would likely be an expensive and protracted process and have a negative effect on the Company’s operations and financial condition. In the event of an adverse judgment, the Company would lose its property rights.
Risks Relating to the Financing of the Company
The Company’s auditors have Expressed a “Going Concern” Opinion.
The Company’s auditor has included a “going concern” opinion in its auditors’ report to the Company's consolidated financial statements for the fiscal year ended December 31, 2025. The qualification was included as a result of the Company having no current source of revenue, incurring losses since inception, and the need to obtain additional financing. If the Company is unable to meet its obligations, it will not be able to fulfill its business plan and be forced to reduce certain operations or cease operations altogether.
8
The Company will require additional financing which could result in substantial dilution to existing shareholders
The Company, while engaged in the business of mineral exploration, is dependent on additional financing for planned exploration programs as outlined herein.Management anticipates being able to raise the necessary funds by means of equity financing.The ongoing exploration of the Company’s properties is dependent upon the Company’s ability to obtain financing through the joint venturing of projects, debt financing, equity financing or other means. Such sources of financing may not be available on acceptable terms, if at all.Failure to obtain such financing may result in delay or indefinite postponement of exploration work on the Company’s exploration properties, as well as the possible loss of its interest in such properties. Any transaction involving the issuance of previously authorized but unissued shares of common stock, or securities convertible into common stock, could result in dilution, possibly substantial, to present and prospective holders of common stock. These financings may be on terms less favorable to the Company than those obtained previously.
The Company has a history of net losses and no operational cash flow to sustain operations and does not expect to begin receiving operating revenue in the foreseeable future
None of the Company’s properties have advanced to the commercial production stage and the Company has no history of earnings or cash flow from operations.The Company has paid no dividends on its shares since incorporation and does not anticipate doing so in the foreseeable future.Historically, the only source of funds available to the Company has been through the sale of its common shares. Any future additional equity financing would cause dilution to current stockholders. If the Company does not have sufficient capital for its operations, management would be forced to reduce or discontinue its activities which would likely have a negative effect on the stock price.
The effects of a global pandemic, such as the COVID-19 outbreak, may have a negative effect on the Company’s operations and financial condition
The World Health Organization declared the novel coronavirus COVID-19 as a pandemic in March 2020. This declaration led to numerous emergency measures being instituted in many countries worldwide. These measures include government and business closures, stay-at-home orders, and limitations placed on work and travel. The continued outbreak of any pandemic, including COVID, could materially and adversely impact the Company’s operations including mineral exploration, its joint-ventures, receipt of necessary government approvals, and regulatory compliance. It may also have a negative effect on the equity and debt markets, which may make raising additional capital more difficult or not available. The full extent of such impacts is outside the Company’s control and may have a significant negative effect on the Company’s operations and financial condition.
Risks Relating to an Investment in the Securities of the Company
The market for the Company’s common stock has been subject to volume and price volatility which could negatively affect a shareholder’s ability to buy or sell the Company’s shares
The market for the common shares of the Company may be highly volatile for reasons both related to the performance of the Company or events pertaining to the industry (e.g. mineral price fluctuation/high production costs/accidents) as well as factors unrelated to the Company or its industry. Market demand for products incorporating resource commodities fluctuate from one business cycle to the next.The Company’s common shares can be expected to be subject to volatility in both price and volume arising from market expectations, announcements and press releases regarding the Company’s business, and changes in estimates and evaluations by securities analysts or other events or factors.In recent years, the securities markets in the United States and Canada have experienced a high level of price and volume volatility, and the market price of securities of many companies, particularly small-capitalization companies such as the Company, have experienced wide fluctuations that have not necessarily been related to the operations, performances, underlying asset values, or prospects of such companies.For these reasons, the price of the Company’s common shares can also be expected to be subject to volatility resulting from purely market forces over which the Company will have no control.Further, despite the existence of a market for trading the Company’s common shares in Canada, stockholders of the Company may be unable to sell significant quantities of common shares in the public trading markets without a significant reduction in the price of the stock.
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The Company has a dependence upon key management employees, the loss or absence of which could have a negative effect on the Company’s operations
The Company strongly depends on the business and technical expertise of its management and key personnel, including Chief Executive Officer and President Paul Kuhn and Chief Financial Officer Winnie Wong.There is little possibility that this dependence will decrease in the near term.As the Company’s operations expand, additional general management resources will be required. The Company may not be able to attract and retain additional qualified personnel and this would have a negative effect on the Company’s operations.
Certain officers and directors may have conflicts of interest
Certain of the directors and officers of the Company are also directors and/or officers and/or shareholders of other natural resource companies.While the Company is engaged in the business of acquiring and exploring mineral properties, such associations may give rise to conflicts of interest from time to time.The Directors of the Company are required by law to act honestly and in good faith with a view to the best interests of the Company and to disclose any interest that they may have in any project or opportunity of the Company.If a conflict of interest arises at a meeting of the board of directors, any director in a conflict must disclose his interest and abstain from voting on such matter.In determining whether or not the Company will participate in any project or opportunity, the directors will primarily consider the degree of risk to which the Company may be exposed and its financial position at the time.
The Company has announced it will become a semi-annual reporting company
Under Coordinated Blanket Order 51-933, the Canadian Securities Administrators have launched a pilot program which permits eligible venture companies listed on the TSX Venture Exchange to shift from quarterly to semi-annual reporting. Under the program, issuers who elect to participate will no longer prepare and file quarterly financial reports for the first and third quarters, and instead will issue a semi-annual report for the first 6 months of the fiscal year, and its annual reporting requirements remain unchanged. Avrupa has announced that it will switch to a semi-annual reporting company effective for fiscal 2026. Because the Company will no longer issue quarterly reports for the first and third quarters, investors may have less timely information about the Company which may negatively affect their ability to evaluate the Company and its financial condition.
The Company could be deemed a passive foreign investment company which could have negative consequences for U.S. investors
The Company could be classified as a Passive Foreign Investment Company (“PFIC”) under the United States tax code. If the Company is declared a PFIC, then owners of the Company’s Common Stock who are U.S. taxpayers generally will be required to treat any so-called "excess distribution" received on its common shares, or any gain realized upon a disposition of common shares, as ordinary income and to pay an interest charge on a portion of such distribution or gain, unless the taxpayer makes a qualified electing fund ("QEF") election or a mark-to-market election with respect to the Company’s shares. A U.S. taxpayer who makes a QEF election generally must report on a current basis its share of the Company’s net capital gain and ordinary earnings for any year in which the Company is classified as a PFIC, whether or not the Company distributes any amounts to its shareholders.
U.S. investors may not be able to enforce their civil liabilities against the Company or its directors, controlling persons and officers
It may be difficult to bring and enforce suits against the Company. The Company is a corporation incorporated in Canada under the laws of British Columbia. Three of the Company’s directors and officers are residents outside of the United States and all of the Company’s assets and its subsidiaries are located outside of the United States.Consequently, it may be difficult for United States investors to effect service of process in the United States upon those directors or officers who are not residents of the United States, or to realize in the United States upon judgments of United States courts predicated upon civil liabilities under United States securities laws.There is substantial doubt whether an original action could be brought successfully in Canada against any of such persons or the Company predicated solely upon such civil liabilities under the U.S. Securities Act.
10
Broker-Dealers may be discouraged from effecting transactions in our common shares because they are considered "Penny Stocks" and are subject to the Penny Stock Rules
Rules 15g-1 through 15g-9 promulgated under the Securities Exchange Act of 1934, as amended, impose sales practice and disclosure requirements on FINRA broker-dealers who make a market in "a penny stock".A penny stock generally includes any equity security that has a market price of less than US$5.00 per share that is not registered on certain national securities exchanges or quoted on the NASDAQ system. The additional sales practice and disclosure requirements imposed upon broker-dealers may discourage broker-dealers from effecting transactions in our shares, which could severely limit the market liquidity of the shares and impede the sale of our shares in the secondary market.
Under the penny stock regulations, a broker-dealer selling penny stock to anyone other than an established customer or "accredited investor" (generally, an individual with net worth in excess of US$1,000,000 or an annual income exceeding US$200,000 in each of the last two years, or US$300,000 together with his or her spouse) must make a special suitability determination for the purchaser and must receive the purchaser's written consent to the transaction prior to sale, unless the broker-dealer or the transaction is otherwise exempt.
In addition, the penny stock regulations require the broker-dealer to deliver, prior to any transaction involving a penny stock, a disclosure schedule prepared by the US Securities and Exchange Commission relating to the penny stock market, unless the broker-dealer or the transaction is otherwise exempt.A broker-dealer is also required to disclose commissions payable to the broker-dealer and the registered representative and current quotations for the securities.Finally, a broker-dealer is required to send monthly statements disclosing recent price information with respect to the penny stock held in a customer's account and information with respect to the limited market in penny stocks.
As a “Foreign Private Issuer”, the Company is exempt from the Section 14 Proxy Rules and Section 16 of the 1934 Securities Act
The submission of proxy and annual meeting of shareholder information (prepared to Canadian standards) on Form 6-K may result is shareholders having less complete and timely data.The exemption from Section 16 rules regarding sales of common shares by insiders may result in shareholders having less data.
Item 4.Information on the Company
DESCRIPTION OF BUSINESS
Introduction
Avrupa’s executive office is located at:
325 Howe Street, Suite 410, Vancouver, British Columbia, Canada V6C 1Z7
Telephone: (604) 687-3520
Facsimile: 1-888-889-4874
E-Mail: info@avrupaminerals.com
Website: www.avrupaminerals.com
The contact person in Vancouver is Winnie Wong, CFO.
The Company's common shares trade on the TSX Venture Exchange under the symbol "AVU".
The authorized share capital of the Company consists of an unlimited number of common shares. As of December 31, 2025, there were 76,074,754 common shares outstanding.
The Company is a growth-oriented junior exploration and development company focused on aggressive exploration, using a prospect generator model, for valuable mineral deposits in politically stable and prospective regions of Europe, including Portugal, Finland, and Kosovo.
11
Corporate Background
The Company was incorporated on January 23, 2008 under the Business Corporations Act of British Columbia under the name Everclear Capital Ltd. On July 7, 2010, the Company changed its name to Avrupa Minerals Ltd.
As of December 31, 2025, the Company has the following subsidiaries:
| % of ownership | Jurisdiction | Nature of operations |
MAEPA Empreendimentos Mineiros e Participacoes Lda | 100% | Portugal | Exploration |
PorMining, Lda. | 100% | Portugal | Exploration |
Innomatik Exploration Kosovo LLC | 100% | Kosovo | Exploration |
AVU Kosova LLC (1) | 49% | Kosovo | Exploration |
Akkerman Finland OY (1) | 49% | Finland | Exploration |
(1) This company is accounted for using the equity method.
Currently, the Company conducts mineral exploration in Portugal, Kosovo, and Finland.
History and Development of the Business
Avrupa was incorporated on January 23, 2008 under the Business Corporations Act of British Columbia. The Company became a “Capital Pool Company” as defined in the Exchange’s Listing Policy 2.4 and its common shares began trading on the TSX Venture Exchange (the "Exchange") on September 2, 2008.
As a Capital Pool Company, the principal business of the Company was to identify and evaluate opportunities for the acquisition of an interest in an asset or business and, once identified and evaluated, to negotiate an acquisition or participation subject to receipt of shareholder approval and acceptance for filing by the Exchange.Until the completion of such a Qualifying Transaction (“QT”), as defined under Exchange Listing Policy 2.4, the Company did not carry on any business other than the identification and evaluation of assets or businesses in this connection.
The Company completed its QT on July 13, 2010 to acquire 90% of the issued and outstanding shares in MAEPA Empreendimentos Mineiros e Participacoes Lda., a private Portuguese company (“MAEPA”) and (b) 92.5% of the issued and outstanding shares of Innomatik Exploration Kosovo LLC, a private Kosovo company (“Innomatik”).The Company received the final approval from the Exchange for its QT and its common shares resumed trading under its current name and trading symbol “AVU” on the Exchange as of July 14, 2010. In April 2012, the Company acquired the remaining 10% of MAEPA to own 100% by paying $150,000 cash and issuing 500,000 common shares. In August 2013, the Company acquired the remaining 7.5% of Innomatik to own 100% by issuing 450,000 common shares and paying €100,000.
The Company holds the rights to a mining license application for the Sesmarias project in Portugal within the Portuguese portion of the Iberian Pyrite Belt in the southern portion in the country. Licenses have varying work commitments, as approved by the government of Portugal, and all licenses carry a 4% net smelter royalty (“NSR”), payable to the government of Portugal.
In December 2021, the Company signed a binding letter agreement with Akkerman Exploration B.V., a Dutch holding company, to acquire a 100% interest in Akkerman Finland OY (“AFOy”). AFOy, at the time of the agreement, owned three mineral reservations in the past-producing and high prospective Vihanti-Pyhäsalmi VMS district in central Finland and a fourth reservation covering under-explored gold targets in a greenstone belt-hosted major shear zone.
In February 2022, the Company issued 3,800,000 common shares at a deemed price of $0.075 per share to settle outstanding debt of $285,000.
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In May 2022, the Company’s Kosovo subsidiary was issued a new exploration license on the Slivova property by the Mining Bureau of Kosovo. In August 2022, the Company entered into an Option Agreement with Western Tethyan Resources on the project which was renamed the Slivova Project. Under the agreement, Western Tethyan can earn up to an 85% interest in the Project by funding €1,800,000 in exploration and development expenses over 3 years and then by making certain milestone and success payments in addition to completing an Environmental Impact Statement, a Feasibility Study, and completing a Mining License application. A definitive agreement was completed in May 2023.
During 2023, the Company’s Finland JV received exploration permits for its Kangasjärvi and Hallaperä projects. Application for an exploration permits on the Yli-li project was made and is in process, while the permit for the Kolima project has been approved by the mining bureau but has not yet been issued due to appeals filed with the district court. Subsequently, a fifth exploration permit was applied for and approved for the Rauhala massive sulfide project.
During 2024, drill programs were conducted at Sesmarias in the Alvalade Project in Portugal and the Kangasjärvi Project in central Finland. Exploration at the Slivova Project in Kosovo continued under the Company’s partner Western Tethyan Resources. With the completion of a new 3-hole drill program at Slivova, Western Tethyan has completed Phase 1 of the earn-in work program and now holds 51% of the Project.
In fiscal 2025, the Company’s joint-venture partner on the Alvalade Project informed Avrupa that it would be withdrawing from the project and returned its interest back to the Company which retains a 100% interest in the project, including the Sesmarias discovery. In July, the Company formally submitted a Mining Licence Application to the Portuguese Mining Bureau for the property covering the Sesmarias area. In Finland, the Company and its JV partner AFOy acquired 3 additional exploration licenses, including two acquired from Pyhäsalmi Mine Oy (“PMO”), the operator of the Pyhäsalmi Mine. The licenses are located in close proximity to the Pyhäsalmi copper and zinc mine, which began mining in 1969.
Business Overview
The Company currently has interests in mineral exploration projects located in Portugal, Finland, and Kosovo. The Company and all of its properties are at the exploration stage. There is no assurance that a commercially viable resource deposit is present on any of the Company’s properties, and additional exploration is required before it is determined if any property is economically and legally viable.
Operations in certain areas are seasonal as the Company cannot conduct certain exploration activities on its properties year-round. The Company is not currently dependent upon market prices for its operations, nor is it dependent upon any patents, licenses or manufacturing processes. The Company’s operations are dependent upon exploration rights and claims as well as the terms of option and/or joint venture agreements on those properties. Please see the individual property descriptions below for the details of each of the Company’s current exploration projects.
Mineral Properties
The Company currently has interests in 10 mineral exploration properties, including 1 property in Portugal, 1 property in Kosovo, and 8 mineral exploration permits in Finland. All of the Company's properties are currently at the exploration stage.
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Portugal
The Company through its subsidiary MAEPA, is currently focused in the Portuguese portion of the Iberian Pyrite Belt, a district with over 2,000 years of mining history from at least Roman times.
Exploration licenses in Portugal typically have duration of 2+1+1+1 years. In addition, all licenses have a 4% NSR attached which may be negotiated downwards in certain instances.
The governing body for Portugal is the Direcao-Geral de Energia e Geologia (“DGEG”).Typically, from application to issuance of licenses, it takes anywhere from 6-12 months, depending on the government’s ability and efficiency to check the application area for competitive application bids, various liabilities (local or regional, political, and/or technical), and anything that might obstruct exploration progress.Often the wait for issuance depends on the prior activities and obligations of the responsible government officials, and the desire to make a public showing of the signing ceremony which advertises investment into Portugal.
Despite exploration properties located on sites with historical operations, the Company does not have any potential environmental liabilities associated with its Alvalade license.
Alvalade Project
The Alvalade project is located in southern Portugal in the Portuguese Pyrite Belt. The project consists of one exploration license and covers approximately 115 square kilometers. The Company currently has a 100% interest in the project.
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Location and Access
The project is located on the Northwest extension of the Portuguese Pyrite Belt in the southwest portion of the country. The Alvalade project is easily accessed by both paved and unpaved roads.Regional two to four lane paved roads cross the license block east to west and north to south.Secondary and Tertiary roads form a network that allows access to much of the project area.A railroad line, which is used to transport copper and zinc concentrates from the Neves Corvo Mine to the port of Setubal passes through the Alvalade license.Several large towns, including Grandola, Ferreira do Alentejo, Castro Verde, and Aljustrel lie within or just outside of the borders of the license block.Electric power lines are ubiquitous, and a number of year-round rivers cross the license area, the main one being the Sado River.
As the Alvalade license block is considered to be a pure exploration play, there are no development types of facilities or plants at this time.The Company uses two warehouses for core storage and detailed review of the core, as well as for a small field office.
Regional and Property Geology
Rocks in the area include Devonian sediments, volcanic sediments, felsic sub-volcanic domes, and mafic diabase-like rocks form the package of target rocks in the area that potentially host copper- and zinc-bearing massive sulfide deposits.These are often covered by younger Carboniferous clastic sediments and turbidites.About 75% of the license block is covered by Tertiary sediments and/or Quaternary gravels.The Devonian target rocks, form a unit that is traceable from south of Lisbon, Portugal to near Seville, Spain, which is the Iberian Pyrite Belt (IPB).The IPB is host to many massive sulfide and stockwork sulfide deposits, which have a history of mining that dates back to Roman times.
The Alvalade project encompasses the Portuguese portion of the IPB that lies just north of the regional Messajana Fault.The giant Aljustrel massive sulfide body lies just to the south of the fault.Two formerly producing mines, Lousal and Caveira, lie within the property boundaries.Previous explorers have drilled upwards of 300 holes within the project area.However, many of the holes did not penetrate more than a few 10’s of meters into bedrock.The Company’s compilation and review of the geology and structure of the Alvalade license indicates the strong possibility of new interpretations for the stratigraphy and the structural framework of the region, allowing for potential discoveries in previously drilled parts of the property block.
Acquisition Details
The Company originally acquired its interest in the property through its acquisition of 90% of MAEPA in July 2010 and increased its interest to 100% (subject to a 3% NSR to the government of Portugal) upon the acquisition of the remaining 10% of MAEPA in April 2012.
MATSA Joint-Venture Agreement
In November 2019, the Company signed a definitive joint-venture agreement with Minas de Aguas Teñidas, S.A. (“MATSA”) to form an earn-in exploration and exploitation joint venture on the Alvalade property. MATSA is a private Spanish mining company which owns and operates three mines in the province of Huelva, Andalusia, Spain.
On November 19, 2019, the Company and MAEPA (collectively the “Company”) and Minas de Aguas Teñidas, S.A. (“MATSA”) and its wholly-owned subsidiary Sandfire Mineira Portugal Unipessoal Lda. (formerly Emisurmin Unipessoal Ltda. (“EUL”)), collectively known as “MATSA”, entered into an Earn-In Joint Venture Agreement (the “Agreement”) with respect to the Alvalade project.
Pursuant to the Agreement, PorMining Lda. (“PorMining”) was incorporated on December 17, 2019 to hold assets and develop mineral rights. EUL could earn up to an 85% interest in PorMining Lda. On March 27, 2020, MAEPA and EUL entered into a Quota Transfer Agreement pursuant to which MAEPA split its 100% interest in the share capital of PorMining into two portions, representing 51% and 49% of the company’s share capital, and sold the 51% portion to EUL for the nominal value of €510.
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On March 27, 2020, the Company, MAEPA, MATSA and EUL entered into the PorMining Lda. Shareholders’ Agreement (the “Agreement”). Pursuant to the Agreement:
·PorMining has five directors. From the effective date until the second option exercise date, three will be nominated by EUL and two by MAEPA. Thereafter, four will be nominated by EUL and one will be nominated by MAEPA. Upon the occurrence of the 51/49 Phase and thereafter, EUL is entitled to nominate three directors and MAEPA two directors. In the event of dilution of the interest of EUL or MAEPA, each will be entitled to proportional representation (as described) equal to its then interest;
·In the event that EUL and/or MAEPA wish to sell or transfer their shares in PorMining, PorMining has a right of first refusal to purchase all or a portion of the shares. To the extent that PorMining does not exercise its right of first refusal to all of the shares, each of EUL and/or MAEPA has a right of first refusal; and,
·The Agreement will terminate at such time as there is a final decision regarding the dissolution and liquidation of PorMining, the parties mutually agree on the termination of the Agreement or as provided for under the Earn-In Joint Venture Agreement.
The effective date of the Transaction is the date that PorMining receives (received on June 15, 2021) the mineral rights in its name from the General Directorate of Energy and Geology of Portugal (“DGEG”). The Transaction was comprised of the following phases:
·Phase I – First Option;
·Phase II – Second Option;
·51/49 Phase; and
·Phase III – Development and Operation
Phase I – First Option
Phase I commenced on the effective date and continues until either the first option exercise date and the termination of the first option, whichever comes first.
During Phase I, MAEPA granted EUL the sole and exclusive right to hold an undivided 51% interest in PorMining (the first option) for at least three years from the effective date or the issue of the Experimental Exploitation License (the “EEL”) by DGEG to PorMining. EUL’s right to maintain its 51% interest is conditional upon MATSA:
·Paying €400,000 to the Company on or before the effective date (€200,000 was received in December 2019 and the remaining €200,000 was received in June 2020);
·Funding or providing the necessary financial instrument to cover the guarantee, which will be returned to MATSA following the release of the guarantee by DGEG (funded €100,000 in June 2020); and
·Funding expenditures (the first option expenditures) on the mineral rights in an aggregate amount of €2,400,000 (€1,200,000 within the first 12 months following the effective date [met] and €1,200,000 in the next 24 months [met]) on or before three years from the effective date or the issue of the EEL.
In March 2022, Sandfire MATSA completed the Phase I First Option by funding a total of €2,500,000 on the Alvalade project, including the €100,000 guarantee with DGEG, and SMP unconditionally earned the 51% interest in PorMining. During Phase I, MAEPA acted as the operator of the mineral rights with PorMining paying MAEPA an operator’s fee equal to €100,000 per year, paid monthly starting June 16, 2020, funded by Sandfire MATSA and which formed part of the first option expenditures.
Upon the completion of Phase I, Sandfire MATSA and PorMining continued with having MAEPA acting as the operator and PorMining continued paying the operator’s fee until December 31, 2024. In January 2025, SMP notified the Company that it intended to transfer its interests in the project back to the Company. In January 2025, MAEPA received the final operator’s fee of €8,333 ($13,151) (2024 - €100,000 ($148,180)) where the fund was included in reimbursements from optionee.
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In February 2025, MATSA notified Avrupa that it would be withdrawing from the project and returning its interest back to the Company. Prior to SMP terminating the Agreement, as of December 31, 2024, Sandfire MATSA funded €5,221,000 towards Phase II – Second Option, but it did not complete this Phase II – Second Option earn-in and paid an additional amount of €159,900 to cover the final planned and wrap up costs for the Alvalade Project.
Exploration History
First-pass review of re-processed regional gravity and magnetics covering the Alvalade license led to the identification of up to ten target areas on the potential Alvalade JV property.The Company upgraded three of these areas – Aldeia dos Elvas, Monte da Bela Vista, and Azinheira dos Barros – and defined drill targets in all three areas.
On October 19, 2011, the Company announced that work completed to date included re-logging of an additional 31 historic drill holes, collection of approximately 250 more samples from the drill core, re-processing of regional gravity and magnetics data, first-pass selection of specific target areas, including the Azinheira dos Barros and Aldeia dos Elvas locations, detailed re-processing of gravity data for the Aldeia area, and 1:10,000-scale geologic mapping and rock chip sampling at Aldeia and Azinheira.Integration of geophysical data, geochemical data, and the results of recent surface work in these two districts suggests the potential for multiple drilling targets in both places.
On February 2, 2012, the Company announced the commencement of exploration work in the Portuguese Pyrite Belt under the Alvalade Joint Venture. The budget for work in 2012 was increased to US$2.5 million and approved by Antofagasta. Company geologists re-logged and selectively sampled over 50,000 meters of historic drill core from 194 drill holes completed in the JV area by other companies prior to the Company's acquisition of the property. A Phase 1 exploratory core drilling program was completed by the Company in three separate target areas. The initial program consisted of 8 holes totaling 3,269.8 meters and was designed to test targets located within two windows of exposed Paleozoic volcano-sedimentary rocks that host massive sulfide deposits elsewhere in the Iberian Pyrite Belt. 7 of the 8 holes drilled encountered alteration characteristic of massive sulphide systems in the Iberian Pyrite Belt. These same 7 holes crossed numerous zones of pyritic material, and 1 of the holes, MBV01, contained significant intervals of low-grade copper that may have been transported from a nearby potentially larger zone of copper mineralization.
Results of the re-logging and sampling, combined with the Phase 1 drill results, were used to plan Phase 2 drilling, which commenced in October 2012. The program consisted of 8 drill holes totaling 3,491 meters. 7 of the holes tested new targets along four separate trends of potentially mineralized host rocks. The 8th hole was drilled in the Monte a Bela Vista target area as a follow-up to hole MBV01 drilled in Phase 1, approximately two kilometers north of the past-producing Lousal Mine. The best results were obtained from the follow-up hole, MBV02, which was drilled to 653.1 meters and intercepted long intervals of probable feeder zone-style mineralized stockwork quartz veining, which may be indicative of the presence of a nearby massive sulfide system. Copper results from MBV02 included 45.90 meters (from 7.30 to 53.20 m) grading 0.24% Cu, including 8.05 meters (from 11.80 to 19.85 m) grading 0.39% Cu and 15.80 meters (from 23.70 to 39.50 m) grading 0.44% Cu; and 24.15 meters (from 146.30 to 170.45 m) grading 0.24% Cu, including 1.50 meters (from 154.15 to 155.65 m) grading 1.64% Cu and 7.50 meters (from 159.60 to 167.10 m) grading 0.44% copper. Gold results included 23.70 meters (from 154.15 to 177.85 m) assaying 1.35 g/t Au, including 1.50 meters (154.15 to 155.65 m) of 5.11 g/t gold and 7.45 meters (161.75 to 169.20 m) of 2.16 g/t gold; and 97.50 meters (279.50 to 377.00 m) of 0.40 g/t Au, including 7.00 meters (293.00 to 300.00) of 1.08 g/t Au and 9.50 meters (310.80 to 320.30 m) of 2.30 g/t Au. The hole also included numerous intervals of greater than 0.1% lead and/or zinc.
In March 2013, the Company commenced the Phase 3 drill program. The program was planned for up to 10 drill holes totaling approximately 4,500 to 5,000 meters. Drilling was planned for several areas along the Neves Corvo and Aljustrel target trends, as the Company developed a total of 23 new, high-quality targets. The first part of the program targeted the Monte da Bela Vista area where Phase 1 and Phase 2 drill holes MBV01 and MBV02 intersected copper and gold vein mineralization, and around the formerly producing mines at Canal Caveira and Lousal.Drill results continue to show positive potential at Monte da Bela Vista. Drill hole MBV03 intersected several zones of stockwork quartz-sulfide mineralization, including a 65-meter-wide zone at a depth of 426 to 491 meters.
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Phase 4 drilling commenced in January 2014. Massive sulfide mineralization was discovered in the second drill hole at the Sesmarias South target area, approximately 7 kilometers south of the past producing Lousal Mine. The area is covered by approximately 100 meters of cover sediment, which completely obscures the target rocks. The mineralized intercept in SES002 totals 16.85 meters.The intercept includes a zone of massive sulfide mineralization, then underlain by a zone of semi-massive sulfides and strong stockwork sulfide veining.There follows a narrow shear zone, which is, in turn, underlain by a further zone of strong alteration with anomalous disseminated and stockwork sulfide mineralization.The analytical results for the Massive and Semi-massive zones are included in the table below:
SULFIDE TYPE | FROM | TO | TOTAL | Cu % | Pb % | Zn % | Sn % | Co % |
Massive | 151.65 | 159.60 | 7.95 | 2.21 | 3.05 | 4.82 | 0.15 | 0.084 |
Semi-massive/stockwork | 159.60 | 162.50 | 2.90 | 0.71 | 1.27 | 3.17 | 0.092 | 0.051 |
TOTAL |
|
| 10.85 | 1.81 | 2.57 | 4.38 | 0.13 | 0.075 |
Six additional holes were drilled in this initial Sesmarias program in the immediate vicinity of the initial Sesmarias massive sulfide intersection (SES002). A total of 1,961 meters were drilled in the general target area. Highlights from the 6 additional holes include:
·SES008, a 650-meter step-out NW from discovery SES002, intersects 5.5 meters of massive sulfide mineralization with positive gold and silver results, and including 5.0 meters @ 0.64% Copper, 0.94% Lead, and 1.54% Zinc.
·SES006, a 50-meter step-out NW from SES002, intersects 1.5 meters of VMS mineralization @ 1.66% Copper, 2.3% Lead, and 3.66% Zinc.
A further five holes were then drilled to follow-up on the prior eight-hole program. The highlight of this follow-up program is a thick massive sulfide intercept in drill hole SES010, which started at a depth of 228.40 meters, and continued for 57.85 meters to 286.25 meters depth. Average grades for the entire massive sulfide intercept are: 0.32% copper, 0.61% lead, 1.95% zinc, 0.45 g/t gold, and 25.1 g/t silver. True thickness of the intercept is estimated to be approximately 35 to 40 meters. The joint-venture partners completed 13 holes, over a total strike length of 1,700 meters, at Sesmarias, for a total of 3,807 meters in the general target area. The Sesmarias target zone is heavily faulted, and the rocks are strongly contorted and displaced, which makes exploration extremely difficult. Despite these difficulties, the results from the drill programs continue to clearly indicate the potential for a large-scale mineralized system.
Drilling at the Alvalade project resumed on October 28, 2015 with funding by the new joint-venture partner Colt Resources.In the new phase of drilling, the partners planned to drill 5,000 to 6,000 meters, mostly in the immediate area of the Sesmarias copper-zinc discovery.
On February 3, 2016, the Company announced results from the drilling. Analytical results from four diamond drill holes completed in late 2015 in the area of previously-drilled SES010 (58 meters @ 0.32% Cu, 0.61% Pb, 1.95% Zn, 0.45 g/t Au, 25 g/t Ag) confirm and extend the massive sulfide lens to a present length of 300 meters with a 35–40-meter thickness.The lens is open to the northwest and down dip to the northeast.Following are the results from this drilling.
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Drill hole ID | From (m) | To (m) | Intercept (m) | Cu (%) | Pb (%) | Zn (%) | Au (g/t) | Ag (g/t) |
SES019 | 263.50 | 315.20 | 51.70 | 0.44 | 0.75 | 2.71 | 0.40 | 17.35 |
including | 264.15 | 299.05 | 34.90 | 0.40 | 0.99 | 3.46 | 0.38 | 20.67 |
and including | 280.45 | 290.95 | 10.50 | 0.36 | 1.71 | 5.18 | 0.37 | 21.71 |
SES020 | 277.85 | 287.55 | 9.70 | 0.25 | 0.57 | 0.99 | 0.47 | 24.70 |
297.70 | 319.95 | 22.25 | 0.55 | 0.59 | 0.66 | 0.53 | 20.54 | |
325.00 | 334.10 | 9.10 | 0.32 | 0.14 | 0.52 | 0.68 | 11.31 | |
337.85 | 356.65 | 18.80 | 0.33 | 0.14 | 0.64 | 0.26 | 6.40 | |
SES021 | 262.85 | 277.65 | 14.80 | 0.36 | 0.29 | 0.40 | 0.43 | 9.82 |
SES022 | 323.90 | 376.00 | 52.10 | 0.43 | 0.49 | 0.98 | 0.62 | 17.31 |
Results from recently-completed downhole geophysics, utilizing the “mise-a-la-masse” (MALM) method, combined with historic ground magnetics data, suggest that the sulfide lens may continue another 300 meters or more to the northwest from SES022.
The drill core was transported by Company personnel from the drill sites to a nearby secure storage facility for logging and sampling. The sample intervals were one meter, unless visual inspection of the core indicated that a slightly different interval was necessary to preserve continuity of mineralization and rock type for analysis. One half of the core was collected and sent to the geochemical laboratory, while the remaining half of the core was retained in the core boxes for future reference. All samples were sent by courier or transported by Company personnel to the ALS Minerals sample preparation facility in Seville, Spain. ALS shipped the prepped material to their main European analytical laboratory located in Loughrea, Ireland. The samples were analyzed by ICP methods for copper, lead, zinc, and silver, and by fire assay with an AAS finish for gold. In addition to ALS Minerals quality assurance/quality control (QA/QC) of all work orders, the Joint Venture conducted its own standard, internal QA/QC from results generated by the systematic inclusion of certified reference materials, blank samples, and field duplicate samples. The analytical results from the quality control samples in the Sesmarias work orders have been evaluated, and conform to industry best-practice standards.
Recent geochemical sampling, using ultra-trace level detection methods to analyze for base metals and a suite of pathfinder elements, in the area of the original SES002 discovery hole, has demonstrated even further northwest extension potential for the SES010 massive sulphide lens. Technical understanding of the sub-surface geology also suggests a possible extension of the lens to the southeast of up to 100 meters. There is also potential for further extension of the SES002 discovery lens, which now appears to be a separate lens from the SES010 lens. It is common to have multiple massive sulphide lenses in Pyrite Belt deposits.
In addition to further downdip and strike length massive sulphide targets found along the 1.8-kilometer trend of Sesmarias mineralization, there are at least four other separate, drill-ready targets in the immediate Sesmarias area, a significant target in the Pombal area located about 10 km southeast of Sesmarias, and several targets at the Monte da Bela Vista stockwork discovery located about 10 km north of Sesmarias, all on the Neves Corvo mineral trend.
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Ongoing geological review of Sesmarias area core, along with subsequent interpretation and three-dimensional (3D) modeling of the data, suggests a simplified deposition history of mineralization and surrounding rock units. Using the newly developed information, the Company’s geologists see continued potential in the SES002 (“2”) Lens and in the SES010 (“10”) Lens. The new work indicates the possibility that a third lens may be located between widely-spaced drill holes SES008 and SES009 (the “8” Lens).
The 2 Lens is characterized by higher grade mineralization, including 10.85 meters @ 1.81% Cu; 75.27 ppm Ag; 2.57% Pb; 4.38% Zn; 0.13% Sn, although at this point, the extents of the mineralized envelope are undefined. The new 3D modeling suggests that the Lens is oriented in a non-parallel direction to the 10 Lens, which may explain why previous follow-up drilling did not significantly extend the discovery area. The Company also sent massive sulfide mineralization for analysis from previously-drilled hole SES003, which intersected the 2 Lens, but was never analyzed.
The 10 Lens, as defined by previous drilling, currently measures approximately 400 meters long, 30 meters wide, and tested to a depth of nearly 200 meters. It is open to the south, north, and to depth. The new drilling targets its extension to the north and potential for increasing copper and zinc grades.
The 8 Lens has been tentatively defined by the area between, and including, two drillholes: SES008 and SES009. Located 500 meters apart, SES008 and SES009 contained narrow zones of sulfide mineralization apparently truncated (from the previous interpretation) by faulting. The SES008 intercept included 5.0 meters @ 0.64% Cu; 36.8 ppm Ag; 0.94% Pb; 1.54% Zn. The SES009 drill hole contained 4.0 meters of pyrite mineralization. The new interpretation suggests that the 8 lens is dipping to the northwest, and that SES008 and SES009 intercepted the outer edge of the mineralized lens.
On November 30, 2018, the Company announced startup of drilling at the Alvalade project to enlarge and upgrade at least two lenses of copper- and zinc-bearing massive sulfide mineralization discovered by Avrupa during previous exploration work in the target area. The Company completed six holes totaling 2,498 meters. The drilling program successfully tested a new exploration model and concepts, with the following important results:
·Provided a much higher degree of predictability in location of mineralization in the immediate Sesmarias Project area, as the new model was tested successfully in all six drill holes;
·Enlarged the “10” Lens from 300 meters strike length to at least 600 meters long, up to 400 meters wide, and 25 meters thick (SES026 and SES027);
·Discovered the footwall feeder zone stockwork for the “8” Lens (SES028);
·Intercepted the edge of the “2” Lens/Horizon (SES025 and SES030);
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·Intercepted a stockwork-stringer sulfide zone above the “10” Lens, providing evidence for a new, fourth lens/horizon, noted for now, as the “26” Horizon (SES026);
·Showed that mineralization is open to the east up to the bounding fault;
·Showed that mineralization is open to the west up to the boundary of the Devonian-age Volcano-Sedimentary (VS) host rocks for mineralization and the overlying Tertiary-age gravels and semi-consolidated sediments.
In March 2019, the Company reported on drilling results at the Alvalade project. Highlights from the program include the following results:
·SES026 intercepted 28.95 meters of 0.48% copper, 0.77 g/t gold, 15.7 ppm silver, 0.52% lead and 1.31% zinc.
·SES026 extended the “10” Lens by 300 meters to the north from previous drilling.
·The “10” Lens is now at 600 meters x 300 meters x 25 meters.
·Mise-à-la-masse (MALM) geophysical anomalism extends another 150 meters past SES026 location.
·SES028 intercepted the edge of a significant feeder zone stockwork beneath the “8” Lens.Assays indicated anomalous gold, silver, copper, lead, and zinc throughout the entire length of the stockwork from 373.40 meters to 460.80 meters in depth, beneath the 8 Lens.
·Discovered a possible new mineralized horizon in SES026, located above the “10” Lens, and intersected it again in SES027 and SES029.
·Confirmed that the high grade “2” Lens is a fault-bounded fragment of massive sulfide mineralization with origin yet to be determined. Hole SES003, drilled previously on this target, is now also being assayed and will be reported shortly.
·Continued re-logging of historic drill holes has upgraded targets in the northern portions of the Sesmarias Prospect.
·Each hole drilled in this exploration phase of the Project has enhanced the revamping of the exploration model.Combined with strong assay results in SES026, in particular, the information will be used in the next drill targeting exercise for this large area.
SES026 intercepted 28.95 meters of massive sulfide mineralization grading 0.48% copper and 0.77 g/t gold, extending the “10” massive sulfide lens to at least 600 meters in strike length.The top seven meters of the intercept contained higher grade silver, copper, lead, and zinc, followed by a nine-meter interval of 1.09 g/t gold, as shown in the table below. The hole was collared on a geophysical anomaly which extends a further 150 meters beyond the SES026 location.At this time, the estimated average dimensions of the 10 Lens are 600 meters long x 300 meters wide x 25 meters thick.The mineralization is open to the east boundary fault and to the west intersection of the Devonian host rocks and the Tertiary gravels.The lens appears to be cut by post-mineral dikes to the north and remains open to the south, though faulting may truncate the lens about 100 meters south of SES021.
SES026 | From (m) | To (m) | Intercept (m) | Au (g/t) | Ag (ppm) | Cu (%) | Pb (%) | Zn (%) |
Total lens | 385.70 | 414.65 | 28.95 | 0.77 | 15.7 | 0.48 | 0.52 | 1.31 |
Base metal zone | 385.70 | 392.70 | 7.00 | 0.52 | 19.0 | 0.66 | 0.57 | 1.44 |
Gold zone | 392.70 | 401.70 | 9.00 | 1.09 | 13.7 | 0.40 | .50 | 1.31 |
Mineralization in SES026 showed significantly higher gold values compared to previous drilling on the 10 Lens, as shown below, as well as slightly higher overall copper values.
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Drill hole ID | From (m) | To (m) | Intercept (m) | Au (g/t) | Ag (ppm) | Cu (%) | Pb (%) | Zn (%) |
SES010 | 228.40 | 286.25 | 57.85 | 0.45 | 25.1 | 0.32 | 0.61 | 1.95 |
SES019 | 263.50 | 315.20 | 51.70 | 0.40 | 17.35 | 0.44 | 0.75 | 2.71 |
including | 264.15 | 299.05 | 34.90 | 0.38 | 20.67 | 0.40 | 0.99 | 3.46 |
and including | 280.45 | 290.95 | 10.50 | 0.37 | 21.71 | 0.36 | 1.71 | 5.18 |
SES020 | 277.85 | 287.55 | 9.70 | 0.47 | 24.70 | 0.25 | 0.57 | 0.99 |
297.70 | 319.95 | 22.25 | 0.53 | 20.54 | 0.55 | 0.59 | 0.66 | |
325.00 | 334.10 | 9.10 | 0.68 | 11.31 | 0.32 | 0.14 | 0.52 | |
337.85 | 356.65 | 18.80 | 0.26 | 6.40 | 0.33 | 0.14 | 0.64 | |
SES021 | 262.85 | 277.65 | 14.80 | 0.43 | 9.82 | 0.36 | 0.29 | 0.40 |
SES022 | 323.90 | 376.00 | 52.10 | 0.62 | 17.31 | 0.43 | 0.49 | 0.98 |
The Sesmarias Prospect area continues for a further 1000 meters to the north of the area of the present phase of drilling.
SES028 hit 87.40 meters of stockwork quartz-iron sulfide veining that marks the possible edge of a feeder zone for the previously discovered “8” Lens.Assays indicated anomalous gold, silver, copper, lead, and zinc throughout the entire length of the stockwork from 373.40 meters to 460.80 meters in depth, beneath the 8 Lens. Examples of variable intervals of anomalism include:
From (m) | To (m) | Total (m) | Au (ppm) | Ag (ppm) | Cu (ppm) | Pb (%) | Zn (%) |
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373.40 | 399.95 | 26.55 |
|
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| 0.09 |
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373.40 | 405.65 | 32.25 |
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| 0.3 |
379.20 | 387.60 | 8.40 | 0.26 |
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393.40 | 398.30 | 4.90 | 0.28 |
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444.30 | 460.80 | 16.50 |
| 8.8 |
| 0.24 | 0.44 |
447.30 | 460.80 | 13.50 |
|
| 0.18 |
|
|
SES026, SES027, and SES029 intersected a horizon of stockwork quartz-sulfide veining located 20-40 meters above the “10” lens.While mostly iron sulfides, the location of the horizon suggests potential for another possible mineral layer in the Sesmarias massive sulfide system.
The Company also provided assay results for drill hole SES003 which was drilled on the Alvalade Project in 2014, but not analyzed until 2019 due to its general proximity and similar visible characteristics to drill hole SES002. The SES003 assays were completed now in order to be added into Avrupa’s 3D model of the “2” Lens.Hole SES002 is the Sesmarias “2” Lens discovery hole, and its assay results are also shown below.SES003 added approximately 18 meters of dip length to the “2” Lens, as calculated in 2014.Results from SES003 are comparable to those from SES002, as shown in the tables below.
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Hole SES003 |
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SULFIDE TYPE | FROM | TO | TOTAL | Cu % | Ag ppm | Pb % | Zn % | Sn % | Co % |
Massive/semi-massive | 132.05 | 145.70 | 13.65 | 1.92 | 38.8 | 1.03 | 1.91 | 0.03 | 0.103 |
| FROM | TO | TOTAL | Cu ppm | Ag ppm | Pb ppm | Zn ppm | --- | Co ppm |
Weak/moderate stockwork | 145.70 | 152.50 | 6.80 | 4133 | 7.42 | 3908 | 11645 | --- | 296 |
Hole SES002 (Previously Reported) |
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SULFIDE TYPE | FROM | TO | TOTAL | Cu % | Ag ppm | Pb % | Zn % | Sn % | Co % |
Massive/semi-massive | 151.65 | 162.50 | 10.85 | 1.81 | 75.3 | 2.57 | 4.38 | 0.13 | 0.075 |
| FROM | TO | TOTAL | Cu ppm | Ag ppm | Pb ppm | Zn ppm | --- | Co ppm |
Weak/moderate stockwork | 162.50 | 168.50 | 6.00 | 4514 | 10.57 | 1886 | 4838 | --- | 528 |
To date, Avrupa has drilled seven closely-spaced, shallow core holes in the area of SES002 and SES003 to determine possible extent of the “2” Lens. Avrupa also conducted several types of downhole and surface geophysical surveys.Intercepts of broken massive sulfide mineralization in SES005, SES006, and SES007, along with results from the geophysical work, and review of the actual core material in all of the holes suggested that mineralization comprising the “2” Lens occurred in a fault zone (now understood as the eastern boundary fault described in the news releases of February 11, 2019 and March 11, 2019).The interpretations from the 2014 drilling program suggested that the possible extents of the “2” Lens were on the order of 100-125 meters dip x 50-75 meters strike, and 5-10 meters thickness, as demonstrated in the following cross section and map view of the mineralization.
The program continues to be highly successful, accomplishing goals of better technical understanding of the Sesmarias mineralizing system and significantly enlarging it. This self-funded drilling program is the seventh phase of drilling to be completed by Avrupa Minerals on the Alvalade license. In addition to further targets in the immediate Sesmarias Project area, additional future drilling is anticipated for the Sesmarias-Lousal-Monte da Bela Vista District, as well as in other Avrupa generated target areas with related Pyrite Belt-style massive sulfide targets and mineralization.
The initiation of the first stage of exploration by MAEPA was delayed due to the COVID-19 situation in Portugal and Spain. Portugal was declared to be in a State of Emergency on March 18th, 2020 which included the suspension of most government operations and private enterprises. On May 2nd, the Emergency was cancelled and a multi-phased plan to ease restrictions and reopen the Country and its economy was initiated.
On June 25, 2020, the Company announced that the five-year Experimental Exploitation License (“EEL”) was issued to PorMining for the Alvalade project. Work commenced with the review and full compilation of all historic data from the license area. Initial physical work included re-logging selected Sesmarias core, first logging and sampling of available, prior-to-Avrupa, historic core, geochemical exploration in selected target areas and Sesmarias extensions, and property-wide geophysics.
In October 2020, the Company announced that the Company would start a 7,000- to 8,000-meter diamond drilling program at the Alvalade Project. The program would test the Sesmarias copper-zinc massive sulfide discovery along strike to both the north and south, as well as the Monte da Bela Vista stockwork zone, located approximately nine kilometers north of Sesmarias. The Company would also drill at a number of other attractive massive sulfide targets around the 115-square kilometer license during the early stages of the program.
The Alvalade Experimental Exploitation license covers at least five target basin areas, each with numerous potential drill target setup locations. Sesmarias has seen the most recent work due to Avrupa’s copper- and zinc-bearing massive sulfide discovery in 2014. Other areas, including Monte da Bela Vista, Lousal, and Caveira. still need first-and second-pass, discovery-oriented drilling. An airborne electromagnetic survey to be conducted late in calendar
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2020 will cover the license from the Caveira Mine in the north to the south end of the Sesmarias zone. Results of this survey will assist in delineating further massive sulfide targets in this area.
The Joint Venture exploration team would also commence with a thorough compilation and detailed study of the historic Lousal Mine data with the expectation of delineating new, previously untested targets close to and within the old mine workings’ area. The Lousal Mine is located 1.5 kilometers south of Monte da Bela Vista, and about seven kilometers north of Sesmarias, but separated by a major fault zone. Geologically, it is possible that the Sesmarias and Lousal massive sulfide lenses were originally part of the same deposit more than 360 million years ago when Pyrite Belt mineralization formed, but movement along the later fault system separated the zones.
The Company previously acquired a large amount of data for the Lousal Mine which was digitized, but not fully compiled. During 2018, the Company performed a basic review of the data, including a partial collection of annual mine production reports from 1900 to 1988. The reports suggested that miners extracted upwards of 15-20 million metric tonnes of copper-zinc-iron- bearing massive sulfide material from a number of lenses in the Lousal Mine.
A new drill program began on the project in December 2020. In previous work at Sesmarias, Avrupa outlined four immediate target zones around the massive sulfide discovery, beyond downdip targets along the actual mineral lenses, Lens 2, Lens 8, and Lens 10. To date, Lens 8 has seen the least amount of development. Re-logging of previous Avrupa drilling by company and partner geologists along the Sesmarias discovery zone is providing an enhanced look into the targeting for new, additional mineralization. The first holes in this drilling phase will be set to extend Lens 8 towards the area of the “Northern Deep” targets, which will be designated the Brejo area, for both strike-length and dip-length extensions of the copper-zinc-iron sulfide zone. In total, the Company expects to drill 7-8,000 meters in the current program.
In addition to the drilling, a helicopter-supported VTEM electromagnetic survey commenced in mid-December, covering the northern 3/4 of the Alvalade License. The survey will cover four of the five major basins on the property, including Lousal, Monte da Bela Vista, Cabeça Gorda, and Caveira. Results from this program will assist in delineating further massive sulfide targets, particularly in the license area between Sesmarias and the historic Canal Caveira massive sulfide deposit located at the north end of the license. Initial orientation flights over the Sesmarias and Lousal massive sulfide deposits will be of significant value for determining the important geophysical characteristics of these deposits.
On February 24, 2021, the Company presented the initial progress report on drilling to date. Two diamond drill holes, totaling 874 meters, have been completed, and a third hole has been started in the SES008 area, testing northern extensions of the Sesmarias copper-zinc-iron sulfide mineralization. Avrupa discovered massive sulfide mineralization at Sesmarias in 2014, and intermittent drilling since then increased the known strike length of the massive lenses to 1.6 kilometers. The present work is the initial attempt to expand the mineralization to the north from SES008 to the Brejo area (formerly designated as Sesmarias North or Northern Deep target). Wide-spaced, historic drilling suggests strong possibility of massive sulfide mineralization in the Brejo target area.
Hole SES20-031 targeted potential massive sulfide mineralization related to the SES008 intercept. The hole continued to 536 meters depth, in several places intersecting the specific black shale unit that hosts massive sulfide mineralization at Sesmarias and at the Lousal Mine, located six kilometers to the north. Detailed review of the core showed that for its entire length, the drill hole passed through intensely folded rock units of the Volcano-Sedimentary Formation, the general host of mineralization throughout the Iberian Pyrite Belt. Overall, however, the drillhole roughly paralleled the major trend of bedding, allowing only for narrow true widths of mineralized intercepts.
The drillhole skirted or skimmed the main target zone, for the length of the hole. Previous work by Avrupa suggested that individual massive sulfide lenses were oriented ± vertically, but often dipping steeply to the NE. However, detailed re-logging of Sesmarias area core and subsequent first-logging of SES20-031 lead to the conclusion that intense folding of the limb of a much larger, overall westerly-dipping fold system is a realistic reason as to why drilling has not yet cut significant thicknesses of massive sulfide – i.e., the drilling roughly parallels the target host unit and never really crosses mineralization at a favorable angle.
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The thickest intercept occurs at 277.70 to 288.45 meters, where drilling skimmed the top of a possible folded/faulted massive sulfide lens. Rocks in the intercept zone are dominantly silica, containing disseminated sulfides, zones of banded sulfide mineralization, sulfide breccias, and one interval of approximately 0.5 meters of massive sulfide material. The intercept includes a 3.8-meter thick, weakly mineralized fault zone. The following table shows the metals’ values of the intercept.
From | To | Total | Copper | Lead |
277.70 | 288.45 | 10.75 | 0.19% | 0.74% |
including |
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279.20 | 281.45 | 2.25 | 0.35% | 1.73% |
281.45 | 285.25 | 3.80 | Fault zone |
|
285.25 | 288.45 | 3.20 | 0.33% | 1.12% |
Following the completion of SES20-031, a downhole electromagnetic (DEM) survey was performed which produced a strong conductive response in the rocks located above the path of the drill hole. Using this information, the second hole was targeted in the “8” Lens zone directly at the conductor. SES21-032 continued to a depth of 338 meters. At 201 to 211 meters, the drill hole passed through the Sesmarias mineral horizon, a zone of weakly pyritic, quartz vein-rich, broken, graphitic gray and black shales which is interpreted to be the DEM conductor, and likely to represent a distal zone of potential massive sulfide mineralization in the “8” Lens area.
Drill hole SES21-033 was designed to target potential downdip massive sulfide mineralization beneath holes SES008 and SES20-031. Following the completion of SES21-033, the Company moved to the northwest of SES008 to potentially increase the strike length of the 8 Lens. At the same time, the geological team continued to assess the historical core in the Brejo area, and started to map geological structures visible in the old Lousal Mine workings. Initial work there clearly shows similarity of ore control characteristics to what we now know about the Sesmarias massive sulfide mineralization.
In June 2021, the Company presented an interim progress report covering drilling at the Alvalade Project. Highlights include:
Section 000
The Company drilled five holes, in different phases of drilling, on Section 000. From west to east, the holes are SES21-032, SES008, SES21-033, SES21-036, and SES21-037.
SES21-032. This hole cut the mineral horizon black shales, but above and distal to massive sulfide mineralization, as shown in the cross section below. Results included low anomalous levels of important indicator metals, including arsenic, antimony, manganese, and molybdenum. Copper, lead, and zinc showed weakly elevated levels, as well, suggesting some measure of proximity to massive mineralization in the subsequent drill holes. This kind of geochemical pattern will assist in vectoring towards mineralization in future target areas.
SES008. The Company drilled the 8 Lens discovery hole in 2014, and reported 5.0 meters of 0.64% copper, 0.94% lead, and 1.54% zinc. Massive sulfide mineralization lies within a wider zone of 33.1 meters of sulfide-bearing black shales and volcanics. The entire sulfide zone is bounded, top and bottom, by faulting.
SES21-033. Discovery of downdip massive sulfide mineralization of the 8 Lens in SES21-033, collared five meters northeast of SES008. After passing through the upper bounding fault zone, the hole intercepted 31.4 meters of disseminated, laminated, and stockwork sulfide mineralization, beginning from a depth of 331.6 meters and continuing downwards to 363.0 meters. Total amount of sulfides generally increases with depth, as do anomalous levels of copper, lead, and zinc. Significant copper-lead-zinc mineralization in massive sulfide material begins at 363.0 meters and terminates at 385.25 meters at the lower fault. The complete mineral zone, bounded by faults, totals 53.65 meters.
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Hole SES21-033 Intercept information
Meters | From | To | Cu (%) | Zn (%) | Pb (%) |
22.25 | 363.00 | 385.25 | 0.42 | 2.07 | 1.05 |
Including: |
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6.00 | 375.60 | 381.60 | 0.38 | 4.14 | 2.04 |
And: |
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4.65 | 380.60 | 385.25 | 0.66 |
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Section 050 N.
The Company drilled two holes on Section 050 N, located 50 meters north of Section 000. Prior to drilling we suspected possible east-west faulting between the two sections, with unknown transposition between the north side and south side of the fault.
SES21-034 and SES21-035. These two holes targeted the northerly continuation of the 8 Lens in roughly the same geological position of the massive sulfide zone intersected in SES21-033. However, geological complications caused by faulting and folding of the target units appear, for all practical appearances, to have transposed the massive sulfide targets somewhat to the east. As both drill holes now appear to have been collared too far to the west, the results indicate that the Company drilled over the potential massive sulfide zone, just as SES21-032 did in Section 000. SES21-034 crossed mineral horizon gray and black shales with elevated results in indicator metals arsenic and antimony, as well as lead. SES21-035 crossed 12.2 meters of stockwork sulfides in mineral horizon black shales from 333.90 meters to 346.10 meters. Geochemical results show anomalous gold, silver, copper, lead, and zinc levels, as well as elevated indicator metals antimony and arsenic, suggesting close proximity to a potential massive sulfide zone.
SES21-036. This hole was collared 30 meters to the northeast of SES21-033. In hole 036, the entire fault-bounded zone of sulfide-bearing black shales and volcanics increases to 80.2 meters, with 17.0 meters of massive sulfide mineralization visible in the core. The hole entered the sulfide mineralized zone at 342.90 meters, with increasing and more intense stockwork mineralization followed by semi-massive sulfides downwards to 406.10 meters. Metal values increase downhole with increased amounts of sulfides. The drillhole passed through semimassive sulfides at this point, and continued through massive mineralization to 423.10 meters, where it is truncated by a fault. The mass also shows internal higher-grade base metal zonation. Further review is necessary to assist in vectoring towards the potential high-grade portions of the deposit.
Meters | From | To | Cu (%) | Zn (%) | Pb (%) |
17.00 | 406.10 | 423.10 | 0.39 | 2.11 | 1.10 |
Including: |
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4.00 | 411.10 | 415.10 | 0.33 | 4.41 | 2.26 |
And: |
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7.00 | 415.10 | 422.10 | 0.47 |
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And: |
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2.00 | 413.10 | 415.10 |
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Total copper zone (semi-massive to massive sulfides) | |||||
56.00 | 367.10 | 423.10 | 0.30 |
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SES21-037. To attempt to further increase the downdip projection of the 8 Lens, this hole was collared 30 meters to the northeast of SES21-036 along Section 000. However, the massive sulfide body appears to be thinning with depth, and increased faulting surely complicates the sulfide mineralized zone in SES21-037. Geological review is ongoing. Sampling will commence upon completion of the review and compilation of the new information.
Geological and geochemical results from drilling along Section 000 suggest a downdip projection of about 150 meters of massive sulfides on this section, up to 20 meters thick, and lying within a wider package of lower grade stockwork/replacement sulfide mineralization. Results from both a recent mise-a-la-masse geophysical study and a coincident grid geochemical survey covering the overall 8 Lens target area suggest further massive sulfide potential, both to the northwest and to the southeast.
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Section 070 S.
Previous drilling at SES20-031 and at SES028 suggests that massive sulfide mineralization could continue to the south from Section 000. We collared SES21-038 on Section 070 S to target potential massive mineralization in a similar geological position to the intercepts in SES21-033 and 036. Drilling in SES028, in 2018-19, intercepted a long interval of stockwork mineralization interpreted to lie geologically below potential massive sulfide mineralization. Drilling in SES20-031, late last year, intersected weakly mineralized silica material interpreted to lie geologically above possible massive sulfide mineralization.
Section 350 S
Hole SES21-044 was drilled along section 350 S and returned a total of 60.4 meters of semi massive to massive mineralization grading 0.40% copper, 0.68 g/t gold, 37.08 g/t silver, 0.96% lead, and 2.33% zinc. This is within a wider zone of 113.8 meters of stockwork to massive sulfide mineralization including 103.0 meters of 0.51 g/t gold, 96.0 meters of 29.20 g/t silver, 113.8 meters of 0.35% copper, 96.0 meters of 0.86% lead, and 96.0 meters of 1.98% zinc.
Section 350 S demonstrates the position of massive sulfide mineralization in a district-scale fold system at Sesmarias North.The massive sulfide body is heavily folded, itself, making it difficult to accurately estimate original true thickness of the beds, though best thinking puts it at 30-40 meters.
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The geological section shows that mineralization can be divided into massive sulfides on the east limb of the main syncline and stockwork to semi-massive sulfides on the west limb of the main syncline.From detailed review of all core at Sesmarias North, it is apparent that the east limb mineralization in SES21-044 is the continuation of mineralization previously intersected in SES21-039, while the west limb mineralization is the continuation of mineralization seen in SES21-040. It is suspected that “two-limb” mineralization continues to the north, and that further drilling will demonstrate the position of such base metal mineralization.The massive sulfide mineralization is believed to remain open to the south towards the previously-discovered mineralization in the Sesmarias Central and South sectors (the “10” Lens).Further work is planned in the Central sector to follow up “2” Lens mineralization, which appears to be separate from the “10” Lens.
Hole SES21-046 was drilled approximately 100 meters from SES 21-044 NW along strike to fill the drilling gap between Section 120S and 350S.
The 250 S geological section shows that SES21-046 crosses the east limb of the Sesmarias syncline with good results in massive sulfide mineralization, then crosses back through a secondary fold into sulfides, but apparently at the very top of the massive body with lower-level results. The drill hole continues through the trough of the syncline until it cuts the closed-off top of the west limb with a higher-grade copper value over a short width. These results and interpretations point to further potential below this hole, as seen in SES21-044. Further drilling is planned for both sections to test for significant depth potential for copper-zinc mineralization.
During 2021, the Company commissioned a helicopter-supported VTEM geophysical survey over a portion of the Alvalade license. Initial results highlighted a trend of potential targets from the Caveira Mine to the Lousal Mine. Widescale cultural interference in the survey area, caused by a village, railroad tracks, and power lines, made visualization of electromagnetic anomalism particularly difficult in the area between Lousal and Sesmarias. However, the Company engaged a second geophysical consulting firm to re-process the original data in order to clarify and accentuate the VTEM anomalism by masking the cultural electromagnetic effects on the survey.
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First-pass, ground follow-up suggests that the anomalism follows the main mineral trend on the Alvalade license, and that the anomalism is hosted by the same (or similar) volcano-sedimentary sequence (VS) rocks that host mineralization at Sesmarias, Lousal, and Monte da Bela Vista. The follow-up work will include mapping, rock chip sampling and grid soil sampling over the initial target areas, followed by work in the enhanced target areas presently being developed through the data re-processing procedures. We anticipate this work to be followed by scout drilling with a second drill rig.
In the Monte da Bela Vista (MBV) target sector where drilling was conducted in 2013-14, the Company returned to the mineralized area in 2021 for more detailed mapping and rock chip sampling, and a re-log of the historic core holes, using knowledge gained during the ongoing Sesmarias campaign. The updated geo-structural model, successfully being utilized in the Sesmarias area, is providing new targets at MBV, particularly in the parts of the area where the target mineral horizon is not exposed at the surface (southwest sector). Previous drilling by the Company targeted exposed VS mineral horizon rocks (northeast sector) with moderate success, but it appears that the best of the exposed mineral horizon zone may have been eroded away or removed structurally.
Combination of results from the VTEM survey, recent mapping and sampling, and an enhanced understanding of the structure and geology, suggests a new, buried and relatively untouched target zone, immediately adjacent to the southwest of the exposed VS mineral horizon rocks, and directly on trend with massive sulfides at the Lousal Mine.
The Company finished much of the initial targeting work at MBV with the acquisition of the final tranche of ionic leach soil sampling results. The Company collected 380 soil samples covering the MBV target area, and all geochemical results have returned from the lab. As expected, strong anomalism of target metals and pathfinder elements is present in the exposed mineral horizon sector in the northeast. In the buried mineral horizon sector in the southwest, strong anomalism in lead, barium, and manganese, along with detectable gold and silver anomalism, suggests the potential for buried massive sulfides, particularly along strike continuation of the Lousal massive sulfide bodies. The presence of a strong VTEM anomaly directly over the geological/geochemical target enhances the interpretation for potentially positive results here.
At the Lousal Mine area, historic data is being compiled and digitized to reconstruct the mine digitally. Knowledge of the workings and mining results will help immensely in defining new targets and extensions of mineralization at the historic mine. Surface geological mapping earlier this year has shown that the complexity of the mineral horizon at Lousal is quite similar to what is seen in the Sesmarias district drilling and what is now being seen in the MBV area.
In September 15, 2022, Phase 9 of drilling began on the Alvalade Project. This new drilling initially targeted anomalies located between the historic Lousal and Caveira Mines, over a strike length of approximately 11 kilometers.The first drill hole targeted potential mineralization located 300-400 meters northwest of the last reported mineralization in the Lousal Mine. Previous, wide-spaced drilling by Avrupa demonstrated the presence of robust massive sulfide mineralization over a further strike length of +1,200 meters through the central and southern sectors at Sesmarias.
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Location map for Phase 9 drilling locations
On March 3, 2023, the Company provided an update on progress at the Alvalade Project. The Company completed four exploration holes, totaling 2,693 meters, in this phase of drilling.The first two holes tested possible NW strike extension of the Lousal massive sulfide deposit (LNW22-001) and electromagnetic anomalism on a parallel trend to Lousal mineralization (LNW22-002).The third hole targeted a strong geophysical anomaly in mineral-host black shales, located about 4 kilometers further north of the Lousal NW holes (RAI22-001).The fourth hole tested another geophysical anomaly in the Casas Novas target sector, two kilometers south of the Caveira Mine area (INC22-001).All four holes cut through weakly mineralized, strongly folded and faulted, target black shales.Geochemical results from sampling of the first three holes suggested proximity to potential massive sulfide systems, particularly in the two Lousal NW drill holes.
Subsequent to completing the two LNW holes, the Company performed a stationary-loop SQUID TEM electromagnetic survey to further attempt to identify potential massive sulfide mineralization in this sector. The survey identified an electrical conductor located west of the drilling in favorable geological target area, supported by anomalous base metal results from previous soil sampling work. Further electromagnetic studies, using a moving electrical loop for more detail, supported the presence of a strong conductor. The schematic location of the conductor would be tested by a new drill hole, LNW23-003. Furthermore, geochemical results from sampling of the first two LNW holes suggested the possibility of nearby sulfide mineralization. The Joint Venture continued detailed geochemical studies and interpretation covering the use of low-level results from elements including gold, silver, arsenic, antimony, manganese, molybdenum, thallium, tin, copper, lead, and zinc, to determine potential proximity to massive sulfide mineralization. In this case, while drilling did not intercept massive sulfide mineralization, the results from sampling of the weakly mineralized black shales, typically the host rock material for mineral deposits in this portion of the Iberian Pyrite Belt (“IPB”), suggested the presence of the kind of hydrothermal system that forms massive sulfide deposits in the IPB. The company is trying to ascertain how to differentiate the black shales from zones of potential massive sulfide mineralization.
Six additional holes were drilled in the Sesmarias Central and South Zones as the JV geological team aimed deeper to 400 meters depth to attempt to locate further high-grade mineralization. Previous JV drilling demonstrated the potential for significant thicknesses of massive sulfide mineralization, and the Company recognized the potential for
30
higher grade mineralization as it moved south towards the Central Zone, perhaps the center of the mineral system.The Company now recognizes that the SES002 lens could be part of the new discovery lens, separated by faulting.
The following diagram shows the extent of drilling in the Sesmarias North and Central Zones from SES019 northwest to SES21-036 as shown in the general schematic section.The six recently-completed drill holes are highlighted in red.
The following tables summarize the most important results from these six drill holes.
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Hole SES23-047 intercepted at least part of the eastern limb of the target mineralized syncline, and possibly part of the hinge of the syncline.Further drilling is clearly necessary to search for both extension and shape of the mineral body.
Drillhole |
| Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) |
SES23-047 |
| 26.95 | 393.80 | 420.75 | 2.18 | 2.58 | 5.60 | 88.2 | 0.33 |
| w/i | 43.40 | 392.80 | 436.20 | 1.51 | 2.15 | 4.78 | 64.1 | 0.26 |
SES23-048 intersected 9.2 meters of massive sulfide mineralization, followed by 8.3 meters of stockwork sulfide mineralization near the presumed top of the hinge zone, or possibly on the western, upright limb of the Sesmarias synform on Section 800 South.
Drillhole |
| Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) |
SES23-048 |
| 9.20 | 419.10 | 428.30 | 1.20 | 1.46 | 3.05 | 30.1 | 0.43 |
| and | 8.30 | 428.30 | 436.60 | 0.31 | anom. | 0.33 | anom. | 0.43 |
| total | 17.50 | 419.10 | 436.60 | 0.78 | --- | --- | --- | 0.43 |
| also | 0.25 | 348.40 | 348.65 | 1.01 | 0.74 | 1.32 | 39.2 | 0.14 |
SES23-049 did not cut significant mineralization, as the hole crossed too high in the Sesmarias synform, much like SES23-041, drilled in 2021.Fragments of massive sulfide mineralization are present in the major thrust fault that bounds and cuts the eastern, overturned limb of the Sesmarias synform
Drillhole |
| Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) |
SES23-049 | no significant results | ||||||||
|
| 0.70 | 332.55 | 333.25 | 0.29 | 0.19 | 0.32 | anom. | anom. |
SES23-050 did not intersect any significant visible mineralization, as the hole crossed beneath the Sesmarias synform.It did cross the eastern limb fault containing abundant disseminated and fragmented pyrite.
Drillhole |
| Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) |
SES23-050 |
| samples in lab -- no significant results expected, though crossed faulted east limb at 397.50 to 398.70 meters, below hinge zone |
| ||||||
SES23-051 crossed 30.7 meters of zinc-rich stockwork sulfide mineralization beneath the hinge zone.This included an intercept of 9 meters of semi-massive to massive sulfide mineralization and a further zone of 8 meters of semi-massive sulfides, followed by another 11.7 meters of stockwork sulfide mineralization.
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Drillhole |
| Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) |
SES23-051 |
| 9.00 | 456.80 | 465.80 | anom. | 0.99 | 2.35 | 11.7 | anom. |
| and | 8.00 | 467.80 | 475.80 | anom. | 3.04 | 3.47 | 50.7 | wk anom. |
| strong stkwk | 19.00 | 456.80 | 475.80 | --- | 1.77 | 2.61 | 27.3 | --- |
| total stkwk | 30.70 | 456.80 | 487.50 | --- | 1.18 | 1.88 | 17.8 | --- |
| remainder of samples in lab -- no significant results expected, below hinge zone | ||||||||
SES23-052 crossed the western, upright limb of the Sesmarias synform in the Sesmarias South area.This is the first deeper intersection of the western limb in the Central and South zones at Sesmarias.The intersect included 28.4 meters of variable sulfide mineralization from stockwork to massive mineralization.
Drillhole |
| Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) |
SES23-052 |
| 5.60 | 358.60 | 364.20 | 0.45 | --- | --- | --- | 0.33 |
| and | 7.00 | 366.20 | 373.20 | anom. | 0.84 | 2.72 | 24.8 | wk anom. |
| incl. | 4.00 | 368.20 | 372.20 | anom. |
| 3.40 |
| wk anom. |
|
| 3.00 | 370.20 | 373.20 | anom. | 1.33 |
|
| wk anom. |
|
| 2.00 | 370.20 | 372.20 | anom. |
|
| 45.1 | wk anom. |
| w/i | 28.40 | 358.60 | 387.00 | total zone of sulfides, including insipient stkwk to massive mineralization | ||||
|
| now cutting remainder of samples -- no significant intervals of high-grade results expected, though several zones of stkwk exist |
| ||||||
Current and Anticipated Exploration
Drilling in 2023 totaled 6,530 meters in 14 holes.Two holes were drilled at Caveira South, one at Casas Novas, four in the Lousal Northwest area, one at Brejo, and six in the Sesmarias massive sulfide VMS deposit area.
The highlight of the 2023 drilling program was the re-discovery of the high-grade copper-zinc-lead-silver mineralization at Sesmarias in SES23-047. Follow-up drilling at Sesmarias confirmed potential for more high-grade massive sulfide and stockwork mineralization in the Central Zone at Sesmarias. The success of the Sesmarias drilling underlies potential for the next phase of drilling there, tentatively commencing in Q2 of 2024.This phase will be aimed at defining the high-grade mineralization located in/around the hinge of the Sesmarias Syncline, particularly along strike between the 250 South and 800 South section lines.Plans for the next phase are underway.
To enhance targeting at Sesmarias, The Company performed an IP-Resistivity survey at the end of 2023. The 6-line, 2100-meter-long IP-Resistivity survey covered the North and Central Zones and the Brejo target area just north of Sesmarias.The survey may assist in identification of stockwork sulfide mineralization in proximity to massive sulfides.
Drilling in the northern target areas of the Alvalade license was less successful than at Sesmarias. Drilling intersected narrow lenses of polymetallic sulfide mineralization in both Caveira South drill holes and wispy, distal facies, replacement sulfide mineralization in the Casas Novas drill hole. The Company hopes to do follow-up drilling in
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both areas at some point in the future. Drilling at Lousal Northwest intercepted the mineral horizon black shales, but included no significant sulfide mineralization.
In 2024, an eight-hole diamond drill program was conducted in the Central Zone at Sesmarias, totaling 4,828.4 meters. This program is designed to upgrade and enhance the body of higher grade, hinge zone, copper-zinc mineralization intersected in previous holes drilled in 2021 and during the 2023 drill program. Highlights of the new 2024 drilling include:
SES24-053: 9.15 m @ 0.40% Cu; 6.11% Pb+Zn; 0.23 g/t Au; and 50.50 g/t Ag.
SES24-054: 28.60 m @ 1.68% Cu; 7.17% Pb+Zn; 0.22 g/t Au; and 73.90 g/t Ag.
SES24-055: 21.60 m @ 0.55% Cu; 1.23% Pb+Zn; 0.56 g/t Au; and 18.55 G/t Ag.
SES24-056/056A: no significant intercepts.
SES24-057: 34.05 m @ 0.11% Cu; 0.26% Pb+Zn; 0.11 g/t Au; 1.68 g/t Ag.
SES24-058: 21.90 m of weak stockwork/replacement mineralization; no samples.
SES24-059: 141.00 m @ 0.31% Cu; 1.97% Pb+Zn; 0.45 g/t Au; 19.74 g/t Ag.
SES24-060: 16.00 m of weak stockwork/replacement mineralization; no samples.
SES24-054 crossed the targeted hinge zone at a depth of around 400 meters. SES24-053 and SES24-055 passed over the hinge zone and cut into the west limb of the Sesmarias synform. SES24-059 passed through the east limb of the synform and into the hinge zone.SES24-057 passed under the hinge zone through weak stockwork sulfide mineralization.Both SES24-058 and SES24-060 passed close under the synform through weak to moderate stockwork and replacement sulfide mineralization, but neither hole was sampled.Hole SES24-056/056A passed well under the hinge zone and was not mineralized.
MATSA provided notice to the Company in February 2025, that it intended to withdraw from the joint-venture. The partners finalized their current work on the project before MATSA transferred its interest back to MAEPA Lda., Avrupa’s 100%-owned subsidiary in Portugal, which was completed by April 1st.
The Company believes the project contains significant potential. On July 9, 2025, the Company announced that it formally submitted a Mining License Application (“MLA”), along with all necessary documentation, covering its 100%-owned Sesmarias copper-zinc VMS project located in the northern portion of the Iberian Pyrite Belt (“IPB”) of Portugal. The Portuguese Mining Bureau, Direção-Geral de Energia e Geologia (“DGEG”), will now take the necessary time to review the submitted documentation, and may request further clarifications and/or additional
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documentation before a decision on granting the license is made. The Company is actively seeking a new joint-venture partner for the project.
Kosovo
The Company advanced its property interests in Kosovo though its 100% owned subsidiary Innomatik Exploration Kosovo (IEK). The Company initially purchased a 92.5% interest in IEK in July 2010. During the year ended December 31, 2013, the Company acquired the remaining 7.5% interest in IEK.
Slivova (formerly Slivovo) Project
The original Slivovo exploration license is located approximately 15 km southeast of the capital Prishtine. The Company’s geologists first discovered an outcropping gossan zone, 200 meters long x 100 meters wide x 75 meters in elevation, near the village of Pester in late 2011. The license covered 15.2 square kilometers and was issued to the Company on June 27, 2012.
During fiscal 2020, Byrnecut decided not to proceed with advancing Slivovo. Rather than dropping the license and potentially allowing a third party to stake the open land, Innomatik Exploration Kosovo LLC (“IEK”), Byrnecut and Peshter Mining entered into a binding term sheet (the “TS”) whereby the parties set out the terms on which Peshter Mining would surrender the existing tenements, thereby enabling IEK to apply, as sole beneficial owner, for one or more tenements over the entirety of the tenement area.
As consideration for Byrnecut ensuring that Peshter Mining complies with its obligations under the TS, IEK must pay to Byrnecut milestone cash payments totaling €375,000 and milestone gold payments totaling 850 troy ounces of gold as follows:
Cash
·€125,000 within 30 days of the first to occur of the completion of a positive bankable feasibility study or the board of directors of IEK making a decision to proceed with the development of a commercial mining operation in respect of all or any part of the tenement area;
·€125,000 within 30 days of issue of a mining license in respect of all or any party of the tenement area; and
·€125,000 within 30 days of commencement of construction of a mine within the tenement area.
Gold
·100 troy ounces within 30 days of commencement of commercial production (“CCP”);
·175 troy ounces within 30 days of the one-year anniversary of CCP;
·250 troy ounces within 30 days of the two-year anniversary of CCP; and
·325 troy ounces within 30 days of the three-year anniversary of CCP.
The license was officially released back to the government and IEK reapplied for the vacated license. The application was reviewed by the board of directors of the Mining Bureau, but no decision was made by the time of their final meeting of their term in office, leaving the decision to a new incoming board of directors. In May 2022, the Company received a new 7-year exploration permit covering the Slivova gold prospect and potential extensions.
In September 2022, the Company announced that it entered into an Option Agreement with Western Tethyan Resources (“WTR”) for WTR to earn-in up to 85% of the Slivova Gold Project by funding and performing certain work programs to potentially advance the Slivova Project to a mining solution. WTR is a private exploration company based in London and Prishtina, Republic of Kosovo, and is 75% owned by London AIM-listed Ariana Resources.
The terms of the agreement for WTR to earn up to an 85% in the project is the following:
The Due Diligence (“DD”) Phase runs from September 1, 2022 (“Effective Date”) to March 1, 2023:
·€35,000 cash payment to Avrupa upon signing (received);
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·€100,000 investment during DD Phase; however if WTR decides to vacate the Project before completion of 6-month DD, minimum of €25,000 must be spent (WTR spent such amount);
·€35,000 cash payment to Avrupa at the end of 6-month DD period (received March 6, 2023);
·Definitive Agreement to be completed and signed (completed May 2023).
Earn-In Phases
·Stage 1:
o€30,000 cash payment to Avrupa on September 1, 2023;
oIf WTR elects to enter the Definitive Agreement, it will invest total €800,000 during first two years from the Effective Date (minimum of €150,000 must be spent by September 1, 2023, post DD Phase), for exploration, drilling, baseline environmental and social surveys, landowners, etc., for 51% of the project.
·Stage 2: After completion of Stage 1, during the third year from the Effective Date, WTR will invest €1,000,000 for NI 43-101 resource estimation, commencement of full Environmental Impact Statement (“EIS”), etc., for 75% of the project.
·Stage 3: During fourth and fifth year from the Effective Date, WTR must complete the EIS, Feasibility Study (“FS”), and Mining License application, for 85% of the project.
·Stage 4: WTR completes success payments to previous JV partner, Byrnecut International Ltd. (“BIL”):
Cash
o€125,000 within 30 days of the first to occur:
-Completion of a positive FS (minimum 15% IRR)
-Avrupa or related party making a decision to proceed with development of a mining operation within the license area
o€125,000 within 30 days of issuance of a mining license for the Slivova Project, and
o€125,000 within 30 days of commencement of mine construction within the license area.
Gold
o100 troy ounces within 30 days of commencement of commercial production (“CCP”);
o175 troy ounces within 30 days of the first-year anniversary of CCP;
o250 troy ounces within 30 days of the second-year anniversary of CCP;
o325 troy ounces within 30 days of the third-year anniversary of CCP.
·Stage 5: Avrupa participates in mine construction or dilutes its interest to a 1% NSR.
On March 2, 2023, the Company reported that WTR completed its detailed due diligence study of the Slivova Gold Deposit and elected to continue with Stage 1 of the earn-in joint venture program at Slivova. In May 2023, the Company and WTR completed the definitive option agreement on the project.
During the 6-month due diligence period, WTR developed a small mine concept for the Slivova Project, studying “feasible access, mining, processing, and tailings management options”.At this level of investigation, WTR found that the Project demonstrates “potential for low initial capex, moderate operating costs, and attractive NPV and IRR in the context of the low initial capex and the current estimated mine life”. As a result of these studies, WTR is initiating a Preliminary Economic Assessment and Scoping Study for the Slivova Project, and that they engaged UK-based consultants Bara Consulting UK and Knight Piesold to perform the study.
During 2023, WTR completed an updated Mineral Resource Estimate and a positive, independent Preliminary Economic Assessment on the small-mine concept. The PEA contemplates a combined open-pit and underground mining operation with gold recovery by Carbon-in-Leach method. WTR also performed exploration rock and soil sampling around the license to help identify satellite deposits.
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In 2024, WTR performed additional exploration to advance resource development in the main Slivova deposit and identify and upgrade satellite deposits. Western Tethyan commenced environmental and social baseline studies in the project area, committing to a strong and positive social relationship with the communities around the project area. The government issued trenching and drilling permits, and WTR commenced property-wide soil sampling and trenching over several untested targets away from the presently proposed mining area.
In early 2025, WTR completed a 3-hole drill program totally 786.4 meters. This drilling tested for further down-plunge extension of gold-silver mineralization in the main gossan zone and at the Dzemajl satellite deposit, located about 800 meters southwest of the main zone. With the completion of this drill program, WTR has met the requirements of the Phase 1 of the earn-in work program by fully spending the required €800,000, and now holds 51% of the Project. WTR may now increase its holding to 75% in AVU Kosova in two further phases over the next three years by making additional exploration expenditures totaling €1 million, completing an Environmental Impact Study (“EIS”) and a Feasibility Study (“FS”) for the Project, and by making the required mining license application to the Kosovo mining authorities.
While the ownership change in AVUK was registered properly, in accordance with Kosovo Mining Law regulations, and in a timely manner at the Kosovo Mining Bureau (“ICMM”), unforeseen delays in the approval of this formal registration resulted in the lapse of the Slivova exploration license at the end of business on May 16, 2025. To cover the expiration of the license, ICMM legal department informally indicated that AVUK should re-apply for the exact same Slivova area at the start of business on May 19, 2025. On behalf of AVUK, WTR legal representation agreed to the informal recommendation, and the application for the new Slivova license was successfully completed and registered in the ICMM system. Application for exploration areas is registered at ICMM on a “first come-first served” basis, thus continuity of tenure was secured for the Slivova Project.
While waiting for the completion of the processing of the application, WTR continued to plan for executing the technical work on the Slivova Project to advance it to the feasibility stage. On February 2, 2026, the Company announced that work at Slivova is currently on hold until the exploration license can be re-issued by the ICMM. With a new majority government recently elected in the country, the Company expects a return to proper licensing activity by ICMM in the near future. Once the license is re-issued, the Company will work with partner WTR to resume normal exploration and development activity at Slivova.
Finland
In December 2021, the Company signed a binding letter agreement (the “Letter Agreement”) with Dutch holding company, Akkerman Exploration B.V. (“AEbv), to acquire 100% ownership of Akkerman Finland OY (“AFOy”).Finnish-registered AFOy owns three mineral reservations in the past-producing and highly prospective Vihanti-Pyhäsalmi VMS district in central Finland, and a gold exploration property located in the Oijärvi Greenstone Belt in north-central Finland.
Currently, the Company has completed the initial earn-in requirements and has a 49% interest in AFOy.
Acquisition Terms
The Company could earn an initial 49% of AFOy in Stage One by issuing 1,470,000 common shares, paying €150,000 (€10,000 paid), and depositing €200,000 into an account dedicated for first year exploration expenditures.
As a Stage Two earn-in, the Company can acquire the remaining 51% of AFOy by issuing a further 1,530,000 common shares and depositing an additional €200,000 into the dedicated account for further exploration expenditures. The Company will also pay out the remaining advances of approximately €15,000 to AFOy’s parent company at this stage.
In February 2022, the Company signed the Share Purchase Agreement with AEbv. In March 2022, the Company completed Stage One under the agreement and acquired the initial 49% in AFOy by issuing 1,470,000 common shares, paying the remaining cash for a total of €150,000, and depositing €200,000 into an account for the first year’s exploration expenditures.
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The Company will review data and drill core from the historic operations which cover each of the project areas, and will engage a qualified professional geologist to complete a technical report on the projects as part of its due diligence process.During the period between Stage One and Stage Two, the Company and AEbv will form a Technical Committee comprised of one representative from each party will oversee the work programs.AFOy’s majority shareholder will have the deciding vote during the initial earn-in period. The Company will be the operator for all work conducted on the properties.
The projects will be upgraded from a “reservation” to “licenses” as the first step of the exploration program.Once license areas are defined and the application process is underway, Avrupa will oversee detailed systematic data compilation and review, historic drill core review, basic surface geochemical exploration, and new drill targeting in preparation for drilling when the license applications are approved.
Projects
Initially there were four projects in the program: Kangasjärvi, Kolima, Säviä copper-zinc reservations in the Pyhäsalmi Mining District, and the Yli-li gold reservation in an under-explored greenstone belt located to the north of the Pyhäsalmi area.Initial work and review led to the dropping of the Säviä reservation due to problematic land access and difficult access to known mineralization.AFOy moved the other three reservations to permit application level, and the Finnish mining bureau, Tukes, granted permits for Kangasjärvi and Kolima.However, several objections were tabled, as allowed by Finnish law, and the Kolima permit was sent to the administrative court. Consequently, AFOy and Avrupa decided to temporarily suspend exploration work at Kolima until the outcome of the court proceedings is established.
The Yli-li application is in process at Tukes.Subsequently, AFOy acquired an exploration permit called Hallaperä covering known massive sulfide mineralization, and a fifth exploration permit through the Finnish permit process covering the Rauhala massive sulfide prospect.
In 2025, the Company and its JV partner AFOy acquired additional licenses, including two exploration licenses from Pyhäsalmi Mine Oy (“PMO”), the operator of the Pyhäsalmi Mine. The Komunneva and Lehto exploration permits are located in close proximity to the Pyhäsalmi copper and zinc mine.
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Kolima Property
The 187 km2 Kolima reservation covers a target zone comprised of a thick layer of mineralized distal-type volcanics containing thin beds and layers of zinc-rich massive sulfide mineralization in some areas. The Geological Survey of Finland (GTK) discovered and explored the area in the period from 1956 to 1983. The GTK found zinc mineralization in an area two kilometers long and 200 to 400 meters wide within strongly altered metasediments and fine-grained volcanic rocks. GTK drilled 70 holes and detected widespread, polymetallic sulfide mineralization occurring as fine disseminations and thin layers of semi-massive sulfides. Generally, it seems that the currently known mineralization represents distal-style metals’ deposition within a larger VMS system that has not yet been discovered. Numerous mineralized boulders containing anomalous gold and copper are present around the site.
AFOy completed a helicopter-supported SkyTEM geophysical survey over the mineralized area of the reservation. Preliminary analysis of the data by AFOy did not suggest any obvious targeting. However, recently-completed detailed review of the data by AFOy and the Company outlined subtle anomalism over southern extension of the known volcanics-hosted mineral trend and also outlined a deeper (175 meters), strong geophysical target in a trend
40
of the volcanic rocks parallel to those that host the known zinc mineralization. There is no reported previous exploration along this second trend, located a few kilometers west of the known zinc showings.
In April 2022, the Company reported on first operations at its recently-acquired Kolima Project in the Pyhäsalmi VMS Belt in central Finland.
Based on known mineralization in historic drill holes, the Company selected a suite of drill holes to detail re-log and sample.Most important goals include: 1) attempt to determine a mineral/geochemical vector towards proximal-style massive sulfide mineralization; 2) establish a more detailed recognition of strength and breadth of the known distal-style massive sulfide mineralization; and 3) determine potential to extend the Kärna mineralization to the southeast, 3.5 kilometers along strike towards the Target 1 geophysical conductor.
On June 21, 2022, the Company provided a follow-up progress report covering work related to the Kolima Project.
·Sampling and re-logging of four historic drill holes completed;
·Geochemical results confirm the presence of distal, disseminated VMS-style zinc mineralization, though the source is still unknown;
·Multi-element, pathfinder geochemistry supports the possibility for proximal, massive VMS-style mineralization within a radius of 5km;
·Combination of geology, SkyTEM geophysics, and new geochemical results suggest several well-defined target areas for first pass drilling when exploration license is issued.
The Company contracted with the Finland Geological Survey (GTK) to re-log and sample four representative, historic drill holes from the Kolima exploration projects carried out from the mid-1950’s to the early-1980’s by GTK.Re-logging of the four drillholes, totaling 743.55 meters and situated along a 2-kilometer strike length, indicated that predominantly disseminated zinc mineralization was present, for the most part, through long intervals of mixed volcanic and sedimentary rocks that form the core of the district-scale Kärnä Anticline.Holes that were started further to the west in the west limb of the anticline tended to have thicker zones of zinc mineralization, while the southeasternmost hole, collared at the edge of the east limb of the anticline, contained the least amount of target volcano-sedimentary rocks, and thus little zinc mineralization.
In addition to intervals of disseminated sulfides, detailed logging also revealed the presence of several thin beds of semi-massive to massive sphalerite, zinc sulfide, up to one meter thick, in two of the holes, again suggesting that the representative drilling cut distal deposition portions of a VMS system. Typical VMS pathfinder elements, including iron, manganese, antimony, arsenic, molybdenum, and locally tin, showed anomalous results.VMS metals themselves, copper, lead, and silver, were also present locally anomalous levels in the sampled core.Following are the zinc results of interest in the holes, from north to south:
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HOLE R339 – Drilled from west limb of Kärnä Anticline; total depth of 84.5 meters; 62 samples | ||||
From (m) | To (m) | Interval (m) | Zinc (%) | Notes |
29.66 | 29.84 | 0.18 | 2.4 | Two thin beds of semi-massive sulfide mineralization within a 20-meter interval of mafic tuffs that contain continuously anomalous Zn up to 0.38%@ over one meter |
44.13 | 44.27 | 0.14 | 4 | |
|
|
|
|
|
63 | 63.15 | 0.15 | 7.8 | Two thin beds of semi-massive sulfide mineralization within an interval of mineralized mafic tuffs containing 5.95 meters @ 1.3% Zn |
65 | 66 | 1 | 4.4 | |
|
|
|
|
|
HOLE R46 – Drilled from west limb of Kärnä Anticline; total depth of 297.6 meters; 109 samples | ||||
From | To | Interval | Zinc | Notes |
175 | 179 | 4 | 0.3 | Strongly anomalous zones of disseminated to weakly bedded sulfide mineralization in mixed tuffs, sediments, and mafic porphyry rocks within a total intercept of disseminated zinc mineralization beginning at a depth of 175 meters and continuing to 281.9 meters.Values range from 100's of ppm zinc to more than 1% over 1 to 4 meters thickness. |
205 | 243.3 | 38.3 | 0.2 | |
254 | 268.7 | 14.7 | 0.6 | |
254 | 258 | 4 | 1.4 | |
272 | 281.9 | 9.9 | 0.2 | |
HOLE R26 – Drilled from crest of Kärnä Anticline; total depth of 151.45 meters; 70 samples | ||||
From | To | Interval | Zinc | Notes |
21 | 29 | 8 | 0.3 | Visible disseminated sulfides throughout both zones of mixed tuffs and sediments at the bottom of the interval |
39.4 | 69 | 29.6 | 0.2 | |
| ||||
Hole R25 – Drilled from east limb of Kärnä Anticline; total depth of 210 meters; 20 samples | ||||
From | To | Interval | Zinc | Notes |
It is encouraging to observe the widespread, disseminated to thin-layered zinc mineralization in mixed volcanics and sedimentary rocks suggesting a distal VMS facies depositional environment.Indicator element anomalism, including iron, manganese, antimony, arsenic, molybdenum, and locally tin, also suggest distal facies VMS mineralization.Locally anomalous values of silver (up to 41.2 g/t over one meter), copper, and lead (up to 0.39% over four meters) further support the possibility of nearby VMS mineralization.
Results of the work to date were positive, and detailed review of all information vectors to the possible presence of a base metal-rich massive sulfide system at Kolima.
·Best potential lays along the west limb of the Kärnä anticline, particularly to the south of historic drilling in the area of SkyTEM Anomaly #1 (located within red oval in Figure 5).
·Further potential lays in the northern sector around and southeast of SkyTEM Anomaly #3 from drill collars to be located to the west of historic drilling and aimed beneath the old holes (located within yellow oval in Figure 5).
·Combination of all results suggests the possibility of a strong VMS system within a general target zone of five kilometers along the Kärnä Anticline.
·At this point, regional geophysics may indicate further potential of favorable stratigraphy located to the northeast of SkyTEM Anomaly #1 between the east limb of the Kärnä Anticline and village of Kolima.There was no known historic drilling in this area.
The Company submitted an application for an Exploration Permit on January 24, 2022. In May 2023, the Kolima application was approved by Finland’s mineral exploration licensing authority, but three appeals were filed. Those appeals must be reviewed before an exploration license can be granted. As part of the administrative process for the
42
appeals, the Company recently responded to additional questions regarding environmental cleanup for drilling programs, and those answers were submitted to the licensing authority and the Court. AFOy and the Company decided to suspend exploration work at Kolima until the administrative process was resolved.
The Kangasjärvi Property
The 203 km2 reservation covers the Kangasjärvi deposit, a satellite deposit of the Pyhäsalmi mine, located about 25 kilometers to the north of the site.The massive sulfide was exposed at the surface, and Outokumpu mined 1-9% zinc material from the Kangasjärvi open pit in 1984-85 down to <100 meters from the surface.Exploration drilling by Outokumpu intersected massive sulfides down to 250 meters depth beneath the pit, but did not attempt deeper drilling, leaving the deposit open at depth, as well as along strike.
In 1983, GTK estimated a small historic resource in two separate lenses.Records in 1987 indicate that Outokumpu mined about 86,000 tonnes of 5.12% zinc.There is also reported anomalous copper, silver, and gold in the deposits. In addition to the Kangasjärvi deposit, there are at least three other mineral occurrences within the reservation area.Little work of any sort has been completed anywhere on the reservation for at least 20 years, even though there are historic drill holes throughout the district.
AFOy has completed a 92 line-kilometer helicopter-supported SkyTEM geophysical work over known significant areas within Kangasjärvi. In March 2022, the Company announced that it would work to advance the Kangasjärvi reservation to an exploration license application. The application area would cover the past producing Kangasjärvi zinc mine and apparent extension targets, as well as other potential prospects identified during the SkyTEM geophysical survey. In order to advance the exploration license application process, field work on the Kangasjärvi Reservation began in April 2022.
First-pass review of drillhole logs and data suggested that the mineralization at Kangasjärvi was hosted by a unit comprising of fine-grained tuffs and sediments, and included thin limestone layers that may act as marker beds within the mineral-horizon package. The potential mineral hosting unit was strongly altered, originally chlorite/sericite, and subsequently highly metamorphosed to include a cordierite-garnet-sillimanite assemblage of minerals. Widespread disseminated sulfides were present with increasing base metal sulfide content towards the known massive sulfide layer. The mineral horizon, as outlined by historic drilling in the open pit area and immediate surroundings over a strike length of 300 meters, was also reflected by strong conductivity and magnetism. Similar high conductivity and magnetism extended in strong and pronounced anomalism beyond previously-drilled mine area to the southeast over at least four kilometers and also for one kilometer to the north of the Kangasjärvi Mine.
Basic exploration work, continued review of historic core and geophysical data, and modeling of SkyTEM data from the Kangasjärvi license suggest an outstanding un-drilled target close to the old Kangasjärvi Mine.The area is structurally complex, but the Company expected that selective re-logging and sampling of available core, along with compilation and re-interpretation of all acquired data, would generate new, potential mineral target areas beyond the mine.
In August 2022, the Company submitted an application for a new Exploration Permit. The application covered approximately 18.4 square kilometers of favorable terrane for copper- and zinc-bearing volcanogenic massive sulfide deposits. In May 2023, the Finish mineral exploration licensing authority approved the Kangasjärvi application, there were no appeals during the 37-day comment period. The exploration license is now fully in force. AFOy has started to fulfill obligations related to the issuance of the new license, including payment of the annual fees directly to the landowners within the permit area, as well as planning the next phase of exploration.
In 2024, AFOy completed two holes in the Kangas Main EM target area, totaling 709.3 meters. A third hole, testing the Kangas North EM anomaly was postponed due to terrain access issues. Drilling cut stringer-type and semi-massive sulfide mineralization in both holes, and samples returned anomalous values over short intervals for base and precious metals, but did not reach ore-grade levels. The highest single 1-meter values for each of the base and precious metals included: 0.24% Cu; 0.25% Zn; 5.92 g/t Ag; and 0.27 g/t Au. These results confirm that the newly-discovered stockwork zone underneath the Kangasjärvi deposit is predominantly pyrite and/or pyrrhotite. The extent and depth of the two holes preclude any real conclusions on the size and shape of the feeder zone, nor any potential
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metals’ zonation within the mineral system. Re-interpreting the original geophysical data is underway, with the goal of targeting a higher-temperature, potentially more copper-rich core zone. Further follow-up drilling will be required in the Main Kangasjärvi anomaly, as well as scout drilling at the untested Kangas North geophysical anomaly.
The Komunneva-Lehto Property
In November 2024, AFOy acquired two new exploration permits known as Komunneva and Lehto which are located in close proximity to the Pyhäsalmi Mine. The permits total 1,570 hectares and were acquired from Pyhäsalmi Mine Oy (“PMO”), the operator of the Pyhäsalmi copper-zinc mine which has mined a massive sulfide deposit since 1969. The initial cost to AFOy was nominal.
Both parties have agreed to collaborate in the ongoing exploration around the renowned Pyhäsalmi massive sulfide deposit. The search is aimed at potential ore extensions and satellite deposits. The agreement allows for AFOy to undertake generative exploration work within the permit boundaries, and if successful, potentially turn to PMO for partnering at later stages of exploration and development of a new mineral body. These two permits are located directly east of the Mining Concession and cover the presumed lateral extension of the mineral horizon over several kilometers. AFOy combined the two permit applications into one, the Greater Lehto permit application, and re-submitted the request to the Finnish mining bureau.
Work will initially rely on the enormous database generated during decades of earlier studies, challenged by the structural complexity and large depth extent of the mineralization system (>1.5km). Despite the large amount of drilling to date, there are still a number of untested, prospective targets. These targets remain relevant, as the mining operation at Pyhäsalmi has not yet reached the end of its operating lifetime. Pyhäsalmi Mine Oy (“PMO”) continues to process pyrite-rich waste for use in the fertilizer business and advance the process of shuttering the mine. PMO previously studied these permit areas as part of its Near-Mine exploration program involving multiple geophysical surveys and drilling. Results to date confirm presence of intense alteration and mineralization along the interpreted lateral extension of the mineral horizon. Historic scout drilling cut anomalous zinc, copper and precious metals’ values in 16 of the 46 holes drilled. AFOy initiated re-analysis of all historic data and information made available as part of the tenement transfers.
In August 2025, AFOy acquired a second exploration permit located adjacent to the Pyhäsalmi Mine from Inmet Finland Oy (“IFO”), a 100%-owned subsidiary of First Quantum Minerals (“FQM”) and parent company of Pyhäsalmi Mine Oy (“PMO”). The new Lippikylä exploration permit covers 2.4 square kilometers, and is located just south of the Pyhäsalmi Mine within sight of the mine’s headframe. The cost to acquire the permit was nominal with a 2% NSR to PMO.
IFO acquired the license in Q4 2024 to follow-up untested gravity anomalies discovered during an extensive internal review of all historic exploration data by company geologists. IFO tested one of the gravity anomalies during Q1 2025 with a single 500-meter drill hole. The drill hole cut two mineralized horizons of intensely altered felsic volcanics with anomalous zinc and copper content in an area which had been previously believed to contain sterile mafic volcanics that overlie the Pyhäsalmi deposit. The source of the gravity anomaly remains unclear, and the results point to increased possibility for a blind satellite deposit(s) in the Lippikylä area.
After consolidation and review of the historic data, AFOy will plan for follow-up drilling on Pyhäsalmi and Lehto permits. The two property acquisitions included all available historic data related to the exploration permits. Review of the data, along with discussion between AFOy and FQM/PMO, suggests at least five drill-ready targets, two on the Lehto property and three on the Lippikylä permit. Details of program will be based on consideration of the data, drill core observations, discussions with PMO, and overall internal AFOy interpretations.
The KKS Property
AFOy acquired the KKS property through the application process in October 2025. KKS totals 18.6 square kilometers in the prolific Vihanti-Pyhäsalmi VMS District of Central Finland and covers three historic VMS prospects: Kurpas, Kaskela and Sirviö.
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Outokumpu discovered mineralization at the Kurpas location in the early 1960’s. Outokumpu explored the prospect intermittently through the end of the 1980’s. Limited drilling to 150 meters depth outlined several lenses of massive sulfide mineralization along a strike length of 700 meters of strongly altered, typical volcano-sedimentary host rocks. No further work is known to have been conducted since that time. At Kaskela, Outokumpu discovered mineralization beneath an airborne EM anomaly in 1985. They discovered two massive sulfide lenses, along a strike length of 1.2 kilometers within a 5-km strike length of potentially mineralized volcano-sedimentary host rocks. Limited drilling to a vertical depth of 100 meters outlined the zones of mineralization. Outokumpu returned several times in the early 1990’s before dropping the prospect. Belvedere Resources claimed the area in 2000 and worked intermittently between 2000 and 2002 before leaving the area. No further work is known since that time. The Geological Survey of Finland (GTK) reviewed the area intermittently from 1970 to 2001. Outokumpu discovered shallow copper-zinc mineralization in 1986 at Kaskela and in 1989 at Kurpas in volcanogenic massive sulfide layers extending over several 100’s of meters at the prospects. Limited shallow drilling returned up to 2.4% copper and 8.8% zinc across narrow intercepts.
Follow-up exploration by Outokumpu Oy and Belvedere Resources Ltd., aimed at potential extensions of the mineralization, did not yield hoped-for results. Both companies discontinued exploration work in the area by 2005, and as a result, no further work has been attempted over the past 20 years. Importantly, as in much of the Vihanti-Pyhäsalmi District, there has been no exploration at all in the deeper parts (> 200 meters) of the prospective volcano-sedimentary sequence around KKS, except for the deep success at Pyhäsalmi, itself. AFOy plans to screen the depth potential with geophysical tools including airborne deep-EM and detailed magnetics.
The Hallaperä Property
The exploration license application for Hallaperä was received in 2023. The Hallaperä exploration license application is located near the town of Kiuruvesi in the Pyhäsalmi Mining District. The license covers known copper and zinc sulfide mineralization discovered by Outokumpu Oy in 1967, and partially outlined by drilling of 42 holes during the period 1967 to 1990.
The main Hallaperä massive sulfide body was outlined in 1967 by 21 drill holes in the initial phase of drilling over a total strike length of 1,150 meters. It is a plate-like body with an average thickness of 3 meters, up a maximum width of 18 meters. The strike is in a NNW-SSE direction, with a dip of 60-70 degrees to the SW. A smaller extension continues across the highway to the SSE over an additional length of 650 meters. The sulfide body was further outlined by subsequent drilling of another 21 holes drilled between 1967 and 1990 and remains open at depth. Mineralization includes both semi-massive sulfide and breccia-type characteristics, surrounded by disseminated sulfides. There is no apparent visible zonation. The highest metal grades are associated with breccia-type mineralization, which contains rounded fragments of silica in a matrix of sulfides. Pyrrhotite and pyrite are the dominant ore minerals, with chalcopyrite a minor constituent. In places, sphalerite and magnetite are also abundant.
The Company has been compiling and evaluating historic drill hole information in order to build a mineralization model to support further exploration. Historic, shallow-penetrating ground EM geophysics outlined close-to-surface mineralization, and follow-up drilling defined mineralization to a depth of just 150 meters. Samples were systematically analyzed for only copper, zinc, iron, and sulfur. With new geochemical and geophysical exploration, followed by drilling, there is room for further expansion of the Hallaperä mineral lens, particularly at depth, but possibly along strike, as well.
The Rauha License
The Finnish mining bureau recently awarded an exploration permit to AFOy for another license covering a massive sulfide deposit near the historic Vihanti Mine.The Rauhala deposit was discovered in 1985 by the Finnish Geological Survey (GTK), and later worked by Outokumpu Oy.It measures nearly 600 meters long and 350 meters wide and averages about 2 meters thick, as presently known.Virtually no work on the deposit has been completed in the past 20-25 years prior to the acquisition by AFOy.
The Rauhala deposit is a small, high-grade, sediment-hosted massive sulfide deposit located southwest of the historic Vihanti Mine in Central Finland.The Geological Survey of Finland discovered the deposit in 1985 and outlined mineralization with 61 drill holes.The mining company Outokumpu Oy took over the project in 1987, drilled nine
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more infill holes and in 1988 reported an initial in-house geological resource of 880,500 mt @ 1.6% copper, 6.1% zinc, 1% lead, 0,5 g/t gold, and 49 g/t silver. The Company has not confirmed these estimates, and is not considering it as a current resource estimate.
Outokumpu continued detailed studies for another six years, completing 22 more drill holes, metallurgical tests, and underground mine design works. Outokumpu did not evaluate the possibility of initial open pit mining, nor was work directed to the possibility of significant gold mineralization in the deposit.The government granted a mining concession to Outokumpu in 1992, but the company did not do any further work at the Rauhala deposit.
AFOy acquired the Rauhala deposit mineral rights in 2023 after a moratorium of the mining concession area expired.In November 2024, AFOy acquired further rights covering potential mineral extensions around the deposit from Pyhäsalmi Mine Oy.AFOy followed this by retrieving, compiling, and analyzing all historic data covering the deposit, including information and geochemical analyses for all 92 drill holes and 2,380 assays from the core samples.Compilation of the data produced the following conclusions:
·The deposit is a tabular layer of massive and disseminated sulfides containing base and precious metals.
·Mineralization is sediment-hosted. There are no associated volcanic units.
·Thickness of the layer varies from 0.5 meters to 12 meters, with an average of 3.6 meters.
·The mineral horizon sub-outcrops below a thin layer of till (which ranges to 20 meters thick), and dips 30°.
·So far, 81 of the 92 holes drilled define an area of 300 meters x 600 meters, drilled to a depth of 210 meters below the surface.
·The main questions remain whether the deposit extends beyond the area studied by Outokumpu, both laterally and at depth, and whether there is a mineralized feeder zone below the deposit.
Avrupa and AEbv would develop a work plan that will include further geophysical studies and follow-up drilling to attempt to expand the volume of the mineralized zone. Work will concentrate on lateral and down-dip expansion potential of the known lens, exploration for possible feeder zone, review of the gold potential in and around the deposit, and the possibility of further lenses of mineralization around the permit area. The project is open for joint venture opportunities.
The Yli-li Gold Property
The 332 km2 Yli-li gold reservation covers 30 kilometers strike length of the southern extension of the Oijärvi greenstone belt and major shear zone. Several nearby properties that contain known gold mineralization are being explored by other operators, but the Yli-li property is relatively under-explored.
GTK first explored the southern extension of the Oijärvi shear zone, covered by the reservation, from 2001 to 2014. Initial studies turned up gold-in-till anomalies over intensely sheared and altered rocks. Limited drilling resulted in one intercept of 3 g/t gold over two meters at the Kupsusselkä prospect. Given these promising early-stage results, there is clearly need for wider-scale systematic exploration program to determine the best targets within the area.
Item 5.Operating and Financial Review and Prospects
Overview
The Company's financial statements are stated in Canadian Dollars (CDN$) and are prepared in accordance with IFRS.The value of the U.S. Dollar in relationship to the Canadian Dollar was $1.37 on December 31, 2025.
The Company has since inception financed its activities through the issuance of equity.The Company anticipates having to raise additional funds by equity issuance in the next several years, as all of the Company’s properties are at the exploration stage. The timing of such offerings is dependent upon the success of the Company’s exploration programs as well as the general economic climate.
Set out below is the operating and financial review for the financial years ended December 31, 2025, 2024 and 2023
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Operating Results
Year ended December 31, 2025 vs. year ended December 31, 2024
During fiscal 2025, the Company’s joint-venture partner on the Alvalade Project returned its interest back to the Company which retains a 100% interest in the project, including the Sesmarias discovery. In July, the Company formally submitted a Mining Licence Application to the Portuguese Mining Bureau for the property covering the Sesmarias area. In Finland, the Company and its JV partner AFOy acquired 3 additional exploration licenses, including two acquired from Pyhäsalmi Mine Oy (“PMO”), the operator of the Pyhäsalmi Mine.
The comprehensive loss for the year ended December 31, 2025 was ($280,984), or ($0.00) per share, compared to a comprehensive loss of ($44,225), or ($0.00) per share, for the year ended December 31, 2024. Mineral exploration expenses were $279,349 (Year ended December 31, 2024 - $61,616), and reimbursement from optionees was $71,740 (2023 - $448,031).
General administrative expense was flat at $391,554 compared to expenses of $392,621 in 2024. Expenses included consulting fees, wages and benefits of $182,297 (2024 - $192,547) and professional fees of $97,944 (2024 - $107,035). Rent was $11,400 (2024 - $11,622) and office and administrative fees rose to $17,128 from $15,828. Investor relations declined to $36,630 from $51,798, and travel increased to $24,613 from $15,972. Listing and filing fees increased to $14,621 from $7,441 and transfer agent fees rose to $6,921 from $6,005.
Other items include foreign exchange loss of $67 (2024 - $172), and loss on investment in Akkerman Finland OY of $68,531 (2023 - $40,257) as its share of the operating loss of AFOy. The Company also had a loss of $6,967 on the derecognition of a former subsidiary in Kosovo and a gain of $399,712 on the acquisition of PorMining.Exchange differences arising on the translation of foreign subsidiaries was a loss of $5,968 (2023 – gain of $2,405).
During the year ended December 31, 2024, the Company expensed exploration costs of $279,349 was entirely expended on Alvalade in Portugal.
Year ended December 31, 2024 vs. year ended December 31, 2023
During fiscal 2024, additional drilling was conducted on the Alvalade property in Portugal. In Kosovo, WTR conducted trenching and drilling on Silvova Property. In Finland, drilling was completed on the Kangasjärvi project, and the Company acquired new exploration licenses near the Pyhäsalmi Mine through its 49% ownership in AFOy.
The comprehensive loss for the year ended December 31, 2024 was ($44,225), or ($0.00) per share, compared to a comprehensive loss of ($55,637), or ($0.00) per share, for the year ended December 31, 2023. Mineral exploration expenses were $61,616 (Year ended December 31, 2023 - $66,492), and reimbursement from optionees was $448,031 (2023 - $482,452).
General administrative expense declined to $392,621 compared to expenses of $438,456 in 2023. Expenses included consulting fees, wages and benefits of $192,547 (2023 - $180,854) and professional fees of $107,035 (2023 - $133,099). Rent rose to $11,622 from $10,200 and office and administrative fees fell to $7,441 from $8,925. Investor relations fell slightly to $51,798 from $52,615, and travel increased to $15,972 from $11,477. Listing and filing fees fell to $7,441 from $8,925 and transfer agent fees rose to $6,005 from $4,786. Other expenses included bank charges of $362 (2023 - $699) and depreciation of $1,464 (2023 - $1,775). In 2024, bad debt recovery was $17,091 compared to a bad debt expense of $12,934 in fiscal 2023.
Other items include foreign exchange loss of $172 (2023 - $5,747) as exchange rates were less favorable in the current year, interest income and other income of $5 (2023 - $491) and loss on investment in Akkerman Finland OY of $40,257 (2023 - $27,569) as its share of the operating loss of AFOy. The Company also wrote-off property deposit of ($1,460) in 2023. Exchange differences arising on the translation of foreign subsidiaries was a gain of $2,405 (2023 - $1,144).
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During the year ended December 31, 2024, the Company expensed exploration costs of $61,616 which consists of costs of $33,260 on Alvalade in Portugal and $28,356 on Slivova in Kosovo.
Year ended December 31, 2023 vs. year ended December 31, 2022
During fiscal 2023, drilling continued on the Alvalade property in Portugal. In Kosovo, WTR completed a new Mineral Resource Estimate and Preliminary Economic Assessment on the Silvova Property. In Finland, exploration permits were issued on several of the licenses, and a fifth exploration project was acquired.
The comprehensive loss for the year ended December 31, 2023 was ($55,637), or ($0.00) per share, compared to a comprehensive loss of ($341,109), or ($0.01) per share, for the year ended December 31, 2022. Mineral exploration expenses were $66,492 (Year ended December 31, 2022 - $72,329), and reimbursement from optionees was $482,452 (2022 - $402,343).
Excluding the non-cash bad debt expenses of $12,934 (2022 - $Nil), depreciation of $1,775 (2022 - $1,923), and share-based payments related to the issuance of stock options of $Nil (2022 - $98,123), the Company’s general and administrative expenses totaled $423,747 during the year ended December 31, 2023 (2022 - $517,021), which is a decrease of $93,274 from the prior year.
Significant declines occurred in investor relations, which decreased to $52,615 from $109,270, professional fees, which fell to $133,099 from $175,500, listing and filing fees, which fell to $8,925 from $14,881, and transfer agent fees, which declined to $4,786 from $13,971. These decreases are largely attributable to fewer issuances of common shares in the current year. Increases occurred in consulting fees, wages and benefits, which rose to $180,854 from $165,955, office and administrative fees, which increased to $21,092 from $15,676, and transfer agent fees, which declined to $4,786 from $13,971.
Other items include foreign exchange loss of ($5,747 (2022 – gain of $17,630) as exchange rates were less favorable in the current year, interest income and other income of $491 (2022 - $2,607) and loss on investment in Akkerman Finland OY of $27,569 (2022 - $62,973) as its share of the operating loss of AFOy. The Company also wrote-off property deposit of ($1,460) in 2023. Exchange differences arising on the translation of foreign subsidiaries was a gain of $1,144 (2022 - loss of $11,320).
During the year ended December 31, 2023, the Company expensed exploration costs of $66,492 which consists of costs of $27,561 on Alvalade in Portugal and $38,931 on Slivova in Kosovo.
Liquidity and Capital Resources
As at December 31, 2025, the Company had working capital of $316,969 (December 31, 2024 – $76,740).With respect to working capital, the Company had cash of $493,359 (December 31, 2023 - $141,011). The increase in cash was due to the completion of a private placement of common shares in fiscal 2025 which was largely offset by expenditures on property exploration and administrative expenses.
During the year ended December 31, 2025, the Company completed a non-brokered private placement by issuing 11,400,000 units (“Unit”) at a price of $0.05 per Unit for gross proceeds of $570,000. Each Unit consists of one common share and one non-transferable warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.075 per common share until December 29, 2028. The Company incurred share issue costs in the amount of $26,977 in connection with the financing. During the year ended December 31, 2024, the Company issued 10,000,000 common shares. The Company completed the private placement of 10,000,000 common stock units at a price of $0.035 per unit. Each unit consisted of one common share and one non-transferable common share warrant, with each warrant exercisable into one common share at a price of $0.10 until September 5, 2027. Share issue costs of $38,887 were incurred in connection with the placement. During the year ended December 31, 2023, the Company issued no common shares.
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As of December 31, 2025, the Company has no outstanding commitments. The Company has not pledged any of its assets as security for loans and is not subject to any debt covenants. The Company issues stock in private placements, option payments from joint venture partners, direct funding by joint venture for the exploration of the Company’s properties, and the exercise of warrants, finders’ warrants, and options. The Company believes that sufficient funding from warrants, options, JV partners and the possible sale of additional equity will allow its efforts to continue throughout 2026. If the market conditions worsen or improve, the Company will make adjustments to budgets accordingly.
The current property exploration budget for fiscal 2026, exclusive of the amounts to be spent by the Company’s joint-venture partners, is minimal. The Company has no exploration expenditures in Portugal budgeted as it awaits the issuance of the Mining License before commencing work on a resource estimate. WTR is funding the exploration on Slivova in Kosovo, and the partners in Finland are seeking partners to fund new exploration programs. General and Administrative expenses for 2026 are budgeted at approximately $600,000.
The Company has financed its operations through the issuance of common shares. The following sales and issuances of common stock have been completed in the last 5 fiscal years.
Common Share Issuances
Year Ended |
Type of Share Issuance | Number of Common Shares Issued |
Price |
Gross Proceeds |
|
|
|
|
|
December 31, 2021 | None | - | - | - |
|
|
|
|
|
December 31, 2022 | Private Placement | 16,666,667 | $0.075 | $ 1,250,000 |
| Debt Settlement | 3,800,000 | 0.075 | 285,000 |
| Property Acquisition | 1,470,000 | 0.065 | 95,550 |
|
|
|
|
|
December 31, 2023 | None | - | - | - |
|
|
|
|
|
December 31, 2024 | Private Placement | 10,000,000 | $0.035 | $ 350,000 |
|
|
|
|
|
December 31, 2025 | Private Placement | 11,400,000 | $ 0.05 | $ 570,000 |
Year Ended December 31, 2025
As at December 31, 2025, the Company had working capital of $316,969 (December 31, 2024 – $76,740).
During the year, Operating Activities used cash of ($413,175), including the loss for the year of ($275,016). Items not involving cash include depreciation of $2,901, loss on derecognition of a former subsidiary in Kosovo of $6,967, loss on investment in Akkerman Finland OY of $68,531, and a gain on its acquisition of PorMining of ($399,712). Changes in non-cash working capital items include sales tax receivables of $184,341; a decrease in amounts due from optionee of $34,267; increase in advance to related party of ($87,712); increase in prepaid expenses and advances of ($24,453); other receivables of $22,715; accounts payable and accrued liabilities of ($6,962); and increase in due to related parties of $67,086. The exchange difference arising on the translation of foreign subsidiaries was ($6,128).
Investing Activities provided cash of $216,759. Net cash from the acquisition of PorMining provided cash of $220,712, the investment in PorMining used cash of ($789), and loss on cash from derecognition of a former subsidiary in Kosovo was ($3,164).
Financing Activities provided cash of $548,764. Proceeds from issuance of common shares provided cash of $570,000, and share issue costs used cash of ($21,236).
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Cash was $493,359 as of December 31, 2025 compared to cash $141,011 as of December 31, 2024, which is an increase of $352,348 during the year.
Year Ended December 31, 2024
As at December 31, 2024, the Company had working capital of $76,740 (December 31, 2022 – $132,571).
During the year, Operating Activities used cash of ($92,464), including the loss for the year of ($46,630). Items not involving cash include depreciation of $1,464, bad debt recovery of ($17,091), and loss on investment in Akkerman Finland OY of $40,257. Changes in non-cash working capital items include sales tax receivables of ($5,773); due from optionee of ($2,728); advances to related party used cash of ($82,208); increase in prepaid expenses and advances used cash of ($3,195); other receivables provided cash of $6,623; decrease in accounts payable and accrued liabilities used cash of ($4,584); due from/to related parties provided cash of $19,002; and exchange difference arising on the translation of foreign subsidiaries was $2,399.
Investing Activities used cash of ($210,142). Advance to Akkerman Finland OY used cash of ($209,538), and purchase of equipment used cash of ($604).
Financing Activities provided cash of $321,872. Proceeds from issuance of common shares provided cash of $350,000, and share issue costs used cash of ($28,128).
Cash was $141,011 as of December 31, 2024 compared to cash $121,745 as of December 31, 2023, which is an increase of $19,266 during the year.
Year Ended December 31, 2023
As at December 31, 2023, the Company had working capital of $132,571 (December 31, 2022 – $157,445).
During the year, Operating Activities used cash of (185,786), including the loss for the year of ($56,781). Items not involving cash include depreciation of $1,775, bad debt expense of $12,934, loss on investment in Akkerman Finland OY of $27,569, and write-down of property deposits of $1,460. Changes in non-cash working capital items include sales tax receivables of ($586); due from optionee of ($18,532); advances to related party used cash of ($49,761); decrease in prepaid expenses and advances provided cash of $6,677; other receivables used cash of ($2,846); decrease in accounts payable and accrued liabilities used cash of ($48,534); due from/to related parties used cash of ($60,264); and exchange difference arising on the translation of foreign subsidiaries was $1,103.
There were no Investing or Financing Activities during the year.
Cash was $121,745 as of December 31, 2023 compared to cash of $307,531 as of December 31, 2022, a decrease of ($185,786) during the year.
Critical Accounting Policies and Estimates
The financial statements have been prepared in accordance with International Accounting Standard (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and Interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). The consolidated financial statements, including comparatives, have been prepared on the basis of IFRS standards that are effective as at December 31, 2025.
The Company's financial statements are stated in Canadian Dollars (CDN$).The value of the Canadian Dollar in relationship to the US Dollar was $1.37 on December 31, 2025.
The consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments which are measured at their fair value. In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information.
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The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of expenses during the reporting period.Actual outcomes could differ from these estimates.The consolidated financial statements include estimates which, by their nature, are uncertain.The impacts of such estimates are pervasive throughout the consolidated financial statements, and may require accounting adjustments based on future occurrences.Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and further periods if the revision affects both current and future periods.
Significant assumptions about the future and other sources of estimation uncertainty that management has made at the consolidated statement of financial position date, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:
Critical judgments
·The analysis of the functional currency for each entity of the Company. In concluding that the Canadian dollar is the functional currency of the parent, management considered both the funds from financing activities and the currency in which goods and services are paid for. The functional currency of its wholly-owned subsidiaries in Europe is the Euro as management considered the currencies which mainly influence the cost of providing goods and services in those subsidiaries. The Company chooses to report in Canadian dollar as the presentation currency;
·The assessment of indications of impairment of each mineral property and related determination of the net realized value and write-down of those properties where applicable;
·The determination that the Company will continue as a going concern for the next year; and
·The accounting for investments in other companies can vary depending on the degree of control and influence over those other companies. Management is required to assess at each reporting date the Company’s control and influence over these other companies. Management has used its judgment to determine which companies are controlled and require consolidation and those which are significantly influenced and require equity accounting.
oThe Company’s interest in AFOy is less than 50%, therefore it does not have the current ability to control the key operating activities of the company. However, pursuant to the Share Purchase Agreement entered into by the companies, the board of directors of AFOy is comprised of one director appointed by the Company and one director by AEBv.Despite the operator being AEBv, the Company provides the necessary funding as part of the earn-in and therefore can influence AFOy’s annual budgets and exploration programs. Management has determined that the Company has significant influence over AFOy and accordingly, the investment in AFOy is accounted for as an investment in associate.
oThe Company’s interest in AVU Kosova LLC is less than 50%, therefore it does not have the current ability to control the key operating activities of the company. Management has determined that the Company has significant influence over AVU Kosova LLC and accordingly, the investment in AVU Kosova LLC is accounted for as an investment in associate.
Significant estimates
·The estimate that 50% of the tax deposits will be recovered within one to two years.
Variation in Operating Results
The Company derives interest income on its bank deposits, which depend on the Company's ability to raise funds.
Management periodically, through the exploration process, reviews results both internally and externally through mining related professionals.Decisions to abandon, reduce or expand exploration efforts is based upon many factors including general and specific assessments of mineral deposits, the likelihood of increasing or decreasing those deposits, land costs, estimates of future mineral prices, potential extraction methods and costs, the likelihood of positive or negative changes
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to the environment, permitting, taxation, labor and capital costs.There cannot be a pre-determined hold period for any property as geological or economic circumstances render each property unique.
Research and Development
The Company conducts no Research and Development activities, nor is it dependent upon any patents or licenses.
Trend Information
The Company knows of no trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on the Company’s operations or financial condition.
Off-Balance Sheet Arrangements
The Company has no Off-Balance Sheet Arrangements.
Item 6.Directors, Senior Management and Employees
The following table lists as of April 22, 2026 the names of the Directors of the Company.The Directors have served in their respective capacities since their election and/or appointment and will serve until the next Annual General Meeting or until a successor is duly elected, unless the office is vacated in accordance with the Articles/By-Laws of the Company.
Directors
Name | Country of Residence |
| Age | Date First Elected/Appointed |
Paul W. Kuhn | Portugal |
| 70 | July 8, 2010 |
Mark T. Brown (1) | Canada |
| 58 | January 23, 2008 |
Paul Dircksen (1) | United States |
| 80 | September 30, 2013 |
Frank Hogel (1) | Germany |
| 53 | August 3, 2016 |
Paul Nelles | Germany |
| 79 | April 7, 2016 |
(1)Member of Audit Committee.
Members of the audit committee meet periodically to approve and discuss the annual financial statements and each quarterly report before filing and mailing. The committee operates under a written charter as included in the Company's Management Information Circular dated April 24, 2024.Details of the charter are contained in Item 6, “Board Practices” below.
The following table lists, as of April 22, 2026, the names of the Executive Officers of the Company.The Executive Officers serve at the pleasure of the Board of Directors.Paul W. Kuhn is a citizen of the United States; Winnie Wong is a citizen of Canada.
Executive Officers
Name | Position | Age | Date of Appointment |
Paul W. Kuhn | CEO and President | 70 | July 8, 2010 |
Winnie Wong | Chief Financial Officer and Corporate Secretary |
51 |
July 8, 2010 |
Paul W. Kuhn joined Avrupa Minerals in July 2010 after working with Metallica Mining in Oslo, Norway since August 2008. He has more than 45 years of experience in the minerals’ exploration business in North America, Central Asia and Europe. He earned an A.B. Degree from Dartmouth College, US, in 1978, and an M.S. Degree from the University of Montana, US, in 1983. Mr. Kuhn has worked in a variety of geological terrains, exploring for gold,
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silver, base metals, uranium, and phosphate deposits, and has spent time as a production geologist in the deep underground mines of the Coeur d`Alene Mining District, historically one of the world’s most important silver districts. Mr. Kuhn has managed successful exploration programs in the US and Turkey, and was involved in a number of base and precious metal discoveries in Turkey, including the Taç and Çorak polymetallic deposits, the Cerattepe Cu-Au volcanogenic massive sulfide deposit, the Altıntepe epithermal Au deposit, the Diyadın Carlin-style Au deposit, and the Karakartal porphyry Cu-Au deposit. Mr. Kuhn was also involved with the original mapping and description of the Çöpler porphyry Au deposit (a 10 million ounce gold deposit now being mined by Alacer Gold and recently sold to Cengiz Holding).
Winnie Wong received a Bachelor of Commerce Degree (Honours) from Queen’s University in 1996 and is a member of the Institute of Chartered Accountants of British Columbia.Since July 1, 2001, she has been Vice President of Pacific Opportunity Capital Ltd.Her role is to manage the financial administration team and to assist Pacific Opportunity Capital Ltd.’s management group on corporate finance projects.From July 1 to December 31, 2000, Ms. Wong was the controller of Pivotal Corporation, a company providing software, services and support to a variety of businesses.Between 1996 and 1999, Ms. Wong worked with Deloitte & Touche, Chartered Accountants.Ms. Wong acts as the CFO and/or Corporate Secretary for other publicly listed companies including Silver North Resources Ltd. (formerly Alianza Minerals Ltd.) (since April 2015), and Au Gold Corp. (since December 2020). Ms. Wong spends approximately 25% of her time on the affairs of the Company.
Mark T. Brown has been a Chartered Accountant since 1993 and is President of Pacific Opportunity Capital Ltd., a private company which provides small and medium sized companies with financial, equity and management solutions. Mr. Brown received a Bachelor of Commerce Degree from the University of British Columbia in 1990 and is a member of the Institute of Chartered Accountants of British Columbia. He has been a Chartered Accountant since 1993 and serves as President of Pacific Opportunity Capital Ltd., a private company which provides small and medium sized companies with financial, equity and management solutions, from 1997 to the present. From 1990 to 1994, he worked with PricewaterhouseCoopers before becoming controller of Miramar Mining Corporation. In 1996, he became controller of Eldorado Gold Corporation where his duties included debt and equity financings, international acquisitions, corporate reporting and system implementation. He is one of the founders of Rare Element Resources Ltd., a resource exploration company traded on the NYSE MKT and TSX Exchanges. He also is a former and current officer and director of other public companies. His current officer and directorships include: a Director of Silver North Resources Ltd. (formerly Alianza Minerals Ltd.), a mineral exploration company traded on the TSX Venture Exchange; a Director of Au Gold Corp., a mineral exploration company traded on the TSX Venture Exchange; a Director and Chief Financial Officer of Copper Fox Metals Inc., a mineral exploration company traded on the TSX Venture Exchange; Chief Financial Officer of EGR Exploration, a gold exploration company traded on the TSX Venture Exchange; a Director of East West Minerals Ltd., an oil and gas company traded on the TSX Venture Exchange; a Director of Green Bridge Metals, a mineral exploration company traded on the Canadian Securities Exchange; a Director of Mineral and Financial Investments Limited, an investment company traded on the London Stock Exchange; and a Director of ExGen Resources Inc., a mineral exploration company traded on the TSX Venture Exchange. Mr. Brown devotes approximately 10% of his time to Company affairs.
Dr. Paul Nelles was one of the founders of the Company’s wholly-owned subsidiary Innomatik Exploration Kosovo LLC (“IEK”) and is currently a non-executive director of IEK. Dr. Nelles is the CEO of Peshter Mining Company J.S.C. that holds the Slivovo license in which the Company has 10.29% interest. Dr. Nelles graduated from TU Berlin in 1972 with a degree in mining engineering and obtained a PhD in mineral processing in 1975. He worked internationally in base metal mining for Metallgesellschaft between 1975 and 1991, at which stage he held the position of General Manager Project Development. In 1991, he was employed as technical director and appointed to the executive board of DESTAG, a leading dimension stone producer and worldwide trader. He was subsequently appointed CEO of the company. Dr. Nelles joined Normandy LaSource in France, as executive director for gold production and industrial minerals in 1997. In 2002, he was appointed as the “Trepca Manager” by the United Nations Mission in Kosovo and was promoted to Deputy Managing Director of the Kosovo Trust Agency in 2004, in charge of all major publicly owned enterprises. Since 2006 he has worked as an independent mining industry advisor. Dr. Nelles devotes approximately 25% of his time to Company affairs.
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Paul Dircksen holds an M.S. in Geology from the Mackay School of Mines at the University of Nevada He has a strong technical background, serving as a team member on ten gold discoveries, seven of which later became operating mines. Mr. Dircksen has over 45 years of experience in the mining and exploration industry, serving in executive, managerial, and technical roles at several companies. He has held senior management positions with a number of resource groups including Orvana Minerals, Lacana Gold, The Cordex Group, Brett Resources, and the Bravo Venture Group. Mr. Dircksen served as Vice-President of business development and technical services of Timberline Resources Corporation, a public mineral exploration company which was listed on the TSX Venture Exchange until its acquisition by McEwen Mining in 2024. Mr. Dircksen devotes approximately 5% of his time to Company affairs.
Frank Högel has a MBA with a focus on financial management, banking, and international business and management from the University of Nürtingen, Germany. He currently serves as the CEO of Peter Beck Performance Funds GbR and sits on the advisory board of Concept Capital Management. Concept Capital is an asset management company focused on evaluating and investing in Canadian resource companies through equity investments, convertible bonds and gold, silver and copper off-take agreements. Mr. Högel also sits on the board of several other public companies listed on the TSX Venture Exchange, including Golden Goliath Resources Ltd., Lake Victoria Gold Ltd., Monarca Minerals Inc., and Nicola Mining Inc., and as a Director of Canamex Gold Corp., which is traded on the Canadian Securities Exchange. Mr. Hogel devotes approximately 5% of his time to Company affairs.
Mark Brown, a director of the Company, was formerly a director of Ascent Industries Corp. (“Ascent”), a company listed on the Canadian Securities Exchange. Mr. Brown resigned as a director of Ascent on February 13, 2019. On March 1, 2019, the Supreme Court of British Columbia issued an order granting Ascent’s application for creditor protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) to address near term liquidity issues.On April 5, 2019, Ascent sold its Canadian Assets for $41.5 million, repaid all liabilities, successfully reorganized as Luff Enterprises Ltd., and was discharged from the CCAA process.
Mark Brown, a director of the Company, was formerly a director of Sutter Gold Mining Inc. (“SGM”) until May 21, 2019.On May 6, 2019, SGM received a cease trade order issued by the British Columbia Securities Commission for failure to file audited financial statements and Management’s Discussion & Analysis for the year ended December 31, 2018.SGM’s listing on the TSX Venture Exchange remains suspended until SGM meets TSX Venture Exchange’s requirements and upon the revocation of the cease trade order.On May 17, 2019, pursuant to an order of the Supreme Court of British Columbia, a receiver was appointed for SGM in order to sell all the assets of SGM and repay the lender.
Except for the two orders detailed above, no Director and/or Executive Officer has been the subject of any other order, judgment, or decree of any governmental agency or administrator or of any court or competent jurisdiction, revoking or suspending for cause any license, permit or other authority of such person or of any corporation of which he or she is a Director and/or Executive Officer, to engage in the securities business or in the sale of a particular security or temporarily or permanently restraining or enjoining any such person or any corporation of which he or she is an officer or director from engaging in or continuing any conduct, practice, or employment in connection with the purchase or sale of securities, or convicting such person of any felony or misdemeanor involving a security or any aspect of the securities business or of theft or of any felony.
There are no arrangements or understandings between any two or more Directors or Executive Officers, pursuant to which he or she was selected as a Director or Executive Officer. No members of the Board of Directors are related.
COMPENSATION
The Company has no arrangements pursuant to which directors are compensated by the Company for their services in their capacity as directors, or for committee participation.There are no director’s service contracts providing for benefits upon termination of employment.
To assist the Company in compensating, attracting, retaining and motivating personnel, the Company grants incentive stock options under a formal Stock Option Plan which was initially adopted by the directors of the Company on July
54
29, 2008 and subsequently re-approved by shareholders at every Annual Meeting of shareholders thereafter, up to and including the most recent Annual Meeting held on June 3, 2025.
The following table sets forth the compensation paid to the Company’s executive officers and members of its administrative body during the last three years.
Summary Compensation Table
(All Figures in Canadian Dollars unless otherwise noted)
Name | Fiscal Year |
Salary | Stock-based Compensation | Number of Options Granted | Other Compensation | Total Compensation |
|
|
|
|
|
|
|
Paul W. Kuhn CEO, President and Director | 2025 2024 2023 | $ 150,000 150,000 150,000 | $ Nil Nil Nil | Nil Nil Nil | $ Nil Nil Nil | $ 150,000 150,000 150,000 |
|
|
|
|
|
|
|
Winnie Wong, CFO and Corporate Secretary (1) | 2025 2024 2023 | N/A N/A N/A | $ Nil Nil Nil | Nil Nil Nil | $ 115,400 122,400 111,700 | $ 115,400 122,400 111,700 |
|
|
|
|
|
|
|
Mark T. Brown, Director (1) | 2025 2024 2023 | N/A N/A N/A | $ Nil Nil Nil | Nil Nil Nil | $ Nil Nil Nil | $ Nil Nil Nil |
|
|
|
|
|
|
|
Paul Dircksen, Director | 2025 2024 2023 | N/A N/A N/A | $ Nil Nil Nil | Nil Nil Nil | $ Nil Nil Nil | $ Nil Nil Nil |
|
|
|
|
|
|
|
Paul Nelles, Director | 2025 2024 2023 | N/A N/A N/A | $ Nil Nil Nil | Nil Nil Nil | $ Nil Nil Nil | $ Nil Nil Nil |
|
|
|
|
|
|
|
Frank Hogel, Director | 2025 2024 2023 | N/A N/A N/A | $ Nil Nil Nil | Nil Nil Nil | $ Nil Nil Nil | $ Nil Nil Nil |
(1)Pacific Opportunity Capital Ltd., a company of which Mark Brown is the President and of which Winnie Wong is the Vice President, charged a total of $115,400, $122,400, and $111,700 for rent and accounting and management fees for a team of four people during financial years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively.
No funds were set aside or accrued by the Company during fiscal 2025 to provide pension, retirement or similar benefits for Directors or Executive Officers.
Employment Contracts and Termination and Change of Control Benefits
In June 2019, the Company and Paul Kuhn agreed to adjust the terms for serving as the Company’s President and CEO. Mr. Kuhn is responsible for providing technical oversight and guidance, establishing corporate goals and objectives, and setting and implementing corporate strategies. Beginning June 1, 2019, Mr. Kuhn receives a fee of $12,500 per month and a rent allowance of €4,000 for the first four months. If the Company is substantially sold or has a change of control, Mr. Kuhn will receive a payment equal to two years of fees. Mr. Kuhn will serve in these roles until terminated in writing by either the Company or Mr. Kuhn. The Company may terminate him at any time without notice or payment in lieu thereof for cause, or at any time without cause by providing six months’ written notice or by paying him in lieu of notice. Mr. Kuhn may leave at any time by providing the Company with three months’ written notice.
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Board Practices
The Board of Directors’ mandate is to manage or supervise the management of the business and affairs of the Company and to act with a view to the best interests of the Company. The Company’s corporate governance practices are the responsibility of the Board.
Management has been delegated the responsibility for meeting defined corporate objectives, implementing approved strategic and operating plans, carrying out the Company's business in the ordinary course, evaluating business opportunities, recruiting staff and complying with applicable regulatory requirements. The Board facilitates its independent supervision over management by reviewing and approving long-term strategic, business and capital plans, material contracts and business transactions, all debt and equity financing transactions. Through its Audit Committee, the Board examines the effectiveness of the Company's internal control processes. The Board reviews and sets executive compensation and recommends incentive stock options.
The Board facilitates its exercise of independent supervision over management by ensuring that a majority of its members are independent of the Company. Directors are considered to be independent if they have no direct or indirect material relationship with the Company. A "material relationship" is a relationship which could, in the view of the Company's Board, be reasonably expected to interfere with the exercise of a director's independent judgment. Currently, the Company has two non-independent directors. Paul W. Kuhn serves as CEO and President of the Company, and Paul Nelles is a non-executive director of IEK.
The Board considers its size each year when it considers the number of directors to recommend to the shareholders for elections at the annual meeting of shareholders, taking into account the number required to carry out the Board's duties effectively and to maintain a diversity of views and experience. At the Annual General Meeting of Shareholders held on June 3, 2025, shareholders approved the resolution to set the current Board at 5 members. The Board does not have a nominating committee, and these functions are currently performed by the Board as a whole. However, if there is a change in the number of directors required by the Company, this policy will be reviewed. When new directors are appointed, they receive orientation on the Company's business, current projects and the industry. Board meetings may also include presentations by the Company's management and employees to give the directors additional insight into the Company's business.
The Board has found that the fiduciary duties placed on individual directors by the Company's governing corporate legislation and the common law and the restrictions placed by applicable corporate legislation on an individual directors' participation in decisions of the Board in which the director has an interest have been sufficient to ensure that the Board operates independently of management and in the best interests of the Company.
The Board of Directors did not meet in person during fiscal 2025. All matters were discussed telephonically during the year and all other matters were approved by resolutions.
Audit Committee
The Audit Committee is a committee of the board of directors to which the Board has delegated its responsibility for oversight of the nature and scope of the annual audit, management’s reporting on internal accounting standards and practices, financial information and accounting systems and procedures, financial reporting and statements and recommending, for Board approval, the audited financial statements and other mandatory disclosure releases containing financial information.The objectives of the Committee are:
1.To assist directors in meeting their responsibilities (especially for accountability) in respect of the preparation and disclosure of the financial statements of the Company and related matters;
2.To provide effective communication between directors and external auditors appointed by the Company;
3.To enhance the external auditors’ independence; and
4.To increase the credibility and objectivity of financial reports.
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Membership of Committee
The Committee shall be comprised of at least three directors of the Company, all of whom shall be “financially literate” as defined by National Instrument 52-110 - Audit Committees. The Board shall have the power to appoint the Committee Chairman.
Meetings
At all meetings of the Committee every question shall be decided by a majority of the votes cast.In case of an equality of votes, the Chairman of the meeting shall not be entitled to a second or casting vote. A quorum for meetings of the Committee shall be a majority of its members, and the rules for calling, holding, conducting and adjourning meetings of the Committee shall be the same as those governing the Board.
Meetings of the Committee should be scheduled to take place at least four times per year.Minutes of all meetings of the Committee shall be taken. The Committee shall report the results of meetings and reviews undertaken and any associated recommendations to the Board.
The Committee shall meet with the external auditors at least once per year (in connection with the preparation of the year-end financial statements) and at such other times as the external auditors and the Committee consider appropriate.
Mandate and Responsibilities of Committee
It is the responsibility of the Committee to oversee the work of the external auditors, including resolution of disagreements between management and the external auditors regarding financial reporting. It is the responsibility of the Committee to satisfy itself on behalf of the Board with respect to the Company’s internal control system:
·identifying, monitoring and mitigating business risks; and
·ensuring compliance with legal, ethical and regulatory requirements.
It is a responsibility of the Committee to review the annual financial statements of the Company prior to their submission to the Board for approval.The process should include but not be limited to:
·reviewing changes in accounting principles, or in their application, which may have a material impact on the current or future years’ financial statements;
·reviewing significant accruals or other estimates such as the ceiling test calculation;
·reviewing accounting treatment of unusual or non-recurring transactions;
·ascertaining compliance with covenants under loan agreements;
·reviewing disclosure requirements for commitments and contingencies;
·reviewing adjustments raised by the external auditors, whether or not included in the financial statements;
·reviewing unresolved differences between management and the external auditors; and
·obtaining explanations of significant variances within comparative reporting periods.
The Committee is to review the financial statements (and make a recommendation to the Board with respect to their approval), prospectuses, management discussion and analysis and all public disclosure containing audited or unaudited financial information before release and prior to Board approval.The Committee must be satisfied that adequate procedures are in place for the review of the Company’ disclosure of all other financial information and shall periodically access the accuracy of those procedures.
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With respect to the appointment of external auditors by the Board, the Committee shall:
·recommend to the Board the appointment of the external auditors;
·recommend to the Board the terms of engagement of the external auditors, including the compensation of the external auditors and the confirmation that the external auditors shall report directly to the Committee; and
·when there is to be a change in auditors, review the issues related to the change and the information to be included in the required notice to securities regulators of such change.
The Committee shall review with external auditors (and the internal auditor if one is appointed by the Company) their assessment of the internal controls of the Company, their written reports containing recommendations for improvement, and management’s response and follow-up to any identified weaknesses.The Committee shall also review annually with the external auditors their plan for their audit and, upon completion of the audit, their reports upon the financial statements of the Company and its subsidiaries. The Committee must pre-approve all non-audit services to be provided to the Company or its subsidiaries by the external auditors.The Committee may delegate to one or more members the authority to pre-approve non-audit services, provided that the member(s) report to the Committee at the next scheduled meeting such pre-approval and the member(s) comply with such other procedures as may be established by the Committee from time to time.
The Committee shall review risk management policies and procedures of the Company (i.e. hedging, litigation and insurance).
The Committee shall establish a procedure for:
·the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters; and
·the confidential, anonymous submission by employees and agents of the Company of concerns regarding questionable accounting or auditing matters.
The Committee shall review and approve the Company’ hiring policies regarding employees and former employees of the present and former external auditors of the Company. It shall have the authority to investigate any financial activity of the Company.All employees of the Company are to cooperate as requested by the Committee.
The Committee may retain any person having special expertise and/or obtain independent professional advice to assist in filling their responsibilities at the expense of the Company without any further approval of the Board.
The current Audit Committee members are Mark T. Brown, Paul Dircksen and Frank Hogel.
Staffing
The Company currently has 1 part-time employee (2024 – 1; 2023 – 2) in Kosovo in geology and exploration, and 2 executive officers (2024 – 2; 2023 – 2).
Management, administrative and secretarial functions in Vancouver are provided by Pacific Opportunity Capital Ltd., a private company of which Mark T. Brown, a director of the Company, is the president and director.
Share Ownership
The Registrant is a publicly owned Canadian corporation, the shares of which are owned by U.S. residents, Canadian residents and other foreign residents.The Registrant is not controlled by another corporation as described below.
The following table lists, as of April 22, 2026, Directors and Executive Officers who beneficially own the Registrant's voting securities and the amount of the Registrant's voting securities owned by the Directors and Executive Officers as a group.
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Share Ownership
Title of Class | Name of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class |
|
|
|
|
Common | Paul W. Kuhn (1) | 1,381,250 | 1.81% |
Common | Winnie Wong (2) | 225,000 | 0.29% |
Common | Mark T. Brown (3) | 13,271,526 | 17.05% |
Common | Paul Dircksen (4) | 200,000 | 0.26% |
Common | Frank Hogel (5) | 600,000 | 0.78% |
Common | Paul Nelles (6) | 326,448 | 0.43% |
|
|
|
|
| Total Directors/Officers | 16,004,224 | 20.25% |
(1)1,181,250 of these shares are common shares and 200,000 represent currently exercisable stock options.
(2)25,000 of these shares are common shares and 200,000 represent currently exercisable stock options.
(3)211,250 of these shares are common shares held directly by Mr. Brown and 2,000,000 are common shares held in Mr. Brown’s RRSP. 9,133,930 are common shares held by Pacific Opportunity Capital Ltd. a private company controlled by Mark T. Brown. 156,250 are common shares are held in the name of Spartacus Management Inc., a private company over which Mr. Brown has control; 200,000 of these shares represent currently exercisable common share purchase options. 1,570,096 are currently exercisable share purchase warrants held by Pacific Opportunity Capital Ltd.
(4)200,000 of these shares represent currently exercisable stock options.
(5)200,000 of these shares are common shares. 200,000 are currently exercisable stock options and 200,000 are currently exercisable share purchase warrants.
(6)126,448 of these shares are common shares, and 200,000 represent currently exercisable stock options
Based upon 76,074,754 common shares outstanding as of April 22, 2026, share purchase warrants and Stock options held by each beneficial holder exercisable within sixty days as detailed in “Stock Options Outstanding” below.
Item 7.Major Shareholders and Related Party Transactions
The Registrant is a publicly owned Canadian corporation, the shares of which are owned by U.S. residents, Canadian residents and other foreign residents.The Registrant is not controlled by another corporation as described below.The Company's common shares are issued in registered form and the following information is taken from the records of TSX Trust Company, 650 West Georgia Street, Suite 2700, Vancouver, BC V6B 4N9.
As of April 22, 2026, the shareholders' list for the Company's common shares showed 19 registered shareholders, including depositories, and 76,074,754 common shares issued and outstanding. Of the total registered shareholders, 13 are resident in Canada holding 72,474,474 common shares, or 95% of the total issued and outstanding; 3 shareholders are resident in the United States holding 2,027,780 common shares, or 3% of the issued and outstanding, and 3 shareholders are resident of other nations holding 1,572,500 common shares, or 2% of the issued and outstanding.
The Company is aware of one person/company who beneficially owns 5% or more of the Registrant's voting securities. The following table lists as of April 22, 2026, persons and/or companies holding 5% or more beneficial interest in the Company’s outstanding common stock.
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5% or Greater Shareholders
Title of Class | Name of Owner | Amount and Nature of Beneficial Ownership | Percent of Class |
|
|
|
|
Common | Mark T. Brown (1) | 13,271,526 | 17.05% |
(1)211,250 of these shares are common shares held directly by Mr. Brown and 2,000,000 are common shares held in Mr. Brown’s RRSP. 9,133,930 are common shares held by Pacific Opportunity Capital Ltd. a private company controlled by Mark T. Brown. 156,250 are common shares are held in the name of Spartacus Management Inc., a private company over which Mr. Brown has control; 200,000 of these shares represent currently exercisable common share purchase options. 1,570,096 are currently exercisable share purchase warrants held by Pacific Opportunity Capital Ltd.
Based upon 76,074,754 common shares outstanding as of April 22, 2026, share purchase warrants and Stock options held by each beneficial holder exercisable within sixty days as detailed in “Stock Options Outstanding” below.
No shareholders of the Company have different voting rights from any other shareholder.
Related Party Transactions
The Company had the following related party transactions for the years ended December 31, 2025, December 31, 2024, and December 31, 2023:
| Services | Amounts Incurred During the Year Ended December 31, 2025 | Amounts Incurred During the Year Ended December 31, 2024 | Amounts Incurred During the Year Ended December 31, 2023 |
Amounts due to: |
|
|
|
|
Pacific Opportunity Capital Ltd. (a) | Rent, loan, management, accounting, marketing, and financing services | $ 115,400 | $ 122,400 | $ 111,700 |
Paul W. Kuhn | Consulting and share-based payment | $ 150,000 | $ 150,000 | $ 150,000 |
TOTAL: |
| $ 265,400 | $ 272,400 | $ 261,700 |
(a)Pacific Opportunity Capital Ltd., a company controlled by Mark Brown, a director of the Company
Item 8.Financial Information
The financial statements as required under Item #18 are attached hereto and found immediately following the text of this Annual Report.The audit report of DeVisser Gray LLP, Chartered Accountants, is included herein immediately preceding the financial statements and schedules.
Current Legal Proceedings
The Company knows of no material, active or pending, legal proceedings against them; nor is the Company involved as a plaintiff in any other material proceeding or pending litigation.The Company knows of no active or pending proceedings against anyone that might materially adversely affect an interest of the Company.
Dividends
The Company has not declared any dividends on its common shares since inception and does not anticipate that it will do so in the foreseeable future.The present policy of the Company is to retain future earnings, if any, for use in its operations and the expansion of its business.
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Item 9.Offer and Listing of Securities
As of December 31, 2025, the end of the Company's most recent fiscal year, the authorized capital of the Company consisted of an unlimited number of common shares without par value.There were 76,074,754 common shares issued and outstanding as of December 31, 2025 and April 22, 2026.
Nature Of Trading Market
The Company's common shares trade on the TSX Venture Exchange in Vancouver, British Columbia, Canada under the stock symbol is “AVU”. The CUSIP number is 05453A207. The Company's common shares are not registered to trade in the United States in the form of American Depository Receipts (ADR's) or similar certificates.
The following table lists the high, low and closing sale prices on the TSX Venture Exchange for the Company's common shares for:
·each of the last six months ending March 31, 2026;
·each of the last twelve fiscal quarters ending the three months ended March 31, 2026; and
·each of the last five fiscal years ended December 31, 2025.
The Company was incorporated on January 23, 2008 under the Business Corporations Act of British Columbia. The Company became a “Capital Pool Company” as defined in the Exchange’s Listing Policy 2.4 and its common shares began trading on the Exchange on September 2, 2008. The Company completed its Qualifying Transaction (“QT”) on July 13, 2010 to acquire 90% of the issued and outstanding shares in MAEPA Empreendimentos Mineiros e Participacoes Lda., a private Portugese company (“MAEPA”) and (b) 92.5% of the issued and outstanding shares of Innomatik Exploration Kosovo LLC, a private Kosovo company (“Innomatik”).The Company received the final approval from the Exchange for its QT and its common shares resumed trading under its current name and trading symbol “AVU.V” as of July 14, 2010.
TSX Venture Exchange
Common Shares Trading Activity
| - Sales- | ||
| Canadian Dollars | ||
Period | High | Low | Close |
|
|
|
|
March 2026 | $ 0.09 | $ 0.06 | $ 0.075 |
February 2026 | $ 0.08 | $ 0.055 | $ 0.07 |
January 2026 | $ 0.085 | $ 0.05 | $ 0.06 |
December 2025 | $ 0.055 | $ 0.035 | $ 0.055 |
November 2025 | $ 0.05 | $ 0.03 | $ 0.04 |
October 2025 | $ 0.05 | $ 0.025 | $ 0.05 |
|
|
|
|
Three Months Ended 3/31/26 | $ 0.09 | $ 0.05 | $ 0.075 |
Three Months Ended 12/31/25 | $ 0.055 | $ 0.025 | $ 0.055 |
Three Months Ended 9/30/25 | $ 0.025 | $ 0.015 | $ 0.025 |
Three Months Ended 6/30/25 | $ 0.025 | $ 0.01 | $ 0.025 |
Three Months Ended 3/31/25 | $ 0.02 | $ 0.015 | $ 0.015 |
Three Months Ended 12/31/24 | $ 0.04 | $ 0.02 | $ 0.025 |
Three Months Ended 9/30/24 | $ 0.065 | $ 0.02 | $ 0.035 |
Three Months Ended 6/30/24 | $ 0.05 | $ 0.02 | $ 0.025 |
Three Months Ended 3/31/24 | $ 0.035 | $ 0.03 | $ 0.03 |
Three Months Ended 12/31/23 | $ 0.05 | $ 0.025 | $ 0.03 |
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Three Months Ended 9/30/23 | $ 0.03 | $ 0.03 | $ 0.03 |
Three Months Ended 6/30/23 | $ 0.08 | $ 0.025 | $ 0.05 |
|
|
|
|
Year Ended 12/31/25 | $ 0.055 | $ 0.02 | $ 0.055 |
Year Ended 12/31/24 | $ 0.065 | $ 0.02 | $ 0.025 |
Year Ended 12/31/23 | $ 0.08 | $ 0.025 | $ 0.03 |
Year Ended 12/31/22 | $ 0.105 | $ 0.02 | $ 0.025 |
Year Ended 12/31/21 | $ 0.15 | $ 0.06 | $ 0.065 |
On September 12, 2012, the Company’s common shares began trading on the Frankfurt Stock Exchange in Germany under the symbol “8AMA”. The following table lists the high, low and closing sale prices on the Frankfurt Stock Exchange for the Company's common shares since January 2021.
Frankfurt Stock Exchange
Common Shares Trading Activity
| - Sales- | ||
| Euros | ||
Period | High | Low | Close |
|
|
|
|
January 2021 to March 2026 | €0.095 | €0.0005 | €0.0505 |
The following table lists, as of April 22, 2026, share purchase warrants outstanding, the exercise price, and the expiration date of the share purchase warrants.
Share Purchase Warrants Outstanding
Number of Share Purchase Warrants Outstanding |
Exercise Price/share |
Expiration Date |
10,000,000 | $0.10 | September 5, 2027 |
11,400,000 | $0.075 | December 29, 2028 |
Total: 21,400,000 |
|
|
American Depository Receipts.
Not applicable.
Other Securities to be Registered
Not applicable
Current Canadian Trading Market
The Company's common stock is currently listed and trading on the TSX Venture Exchange (“TSX-V”).
The TSX-V was created through the acquisition of the Canadian Venture Exchange by the Toronto Stock Exchange.The Canadian Venture Exchange was a result of the merger between the Vancouver Stock Exchange and the Alberta Stock Exchange which took place on November 29, 1999. On August 1, 2001, the Toronto Stock Exchange completed its purchase of the Canadian Venture Exchange from its member firms and renamed the Exchange the TSX Venture Exchange. The TSX-V currently operates as a complementary but independent exchange from its parent.
The initial roster of the TSX-V was made up of venture companies previously listed on the Vancouver Stock Exchange or the Alberta Stock Exchange and later incorporated junior listings from the Toronto, Montreal and Winnipeg Stock
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Exchanges. The TSX-V is a venture market as compared to the TSX Exchange which is Canada’s senior market and the Montreal Exchange which is Canada’s market for derivatives products.
The TSX-V is a self-regulating organization owned and operated by the TSX Group.It is governed by representatives of its member firms and the public.
The TSX Group acts as a business link between TSX Venture Exchange members, listed companies and investors.TSX-V policies and procedures are designed to accommodate companies still in their formative stages and recognize those that are more established. Listings are predominately small and medium sized companies.
Regulation of the TSX Venture Exchange, its member firms and its listed companies is the responsibility of Investment Industry Regulatory Organization of Canada ("IIROC"). IIROC is a not-for-profit, independent Canadian self-regulatory organization that, among other things, oversees trading in exchanges and marketplaces.
IIROC administers, oversees and enforces the Universal Market Integrity Rules (“UMIR”). To ensure compliance with UMIR, IIROC monitors real-time trading operations and market-related activities of marketplaces and participants, and also enforces compliance with UMIR by investigating alleged rule violations and administering any settlements and hearings that may arise in respect of such violations.
Investors in Canada are protected by the Canadian Investor Protection Fund (“CIPF”). The CIPF is a private trust fund established to protect customers in the event of the insolvency of a member of any of the following Self-Regulatory Organizations: the TSX Venture Exchange, the Montreal Exchange, the TSX, the Toronto Futures Exchange and the IIROC.
Item 10.Additional Information
Share Capital
The Company has financed its operations through the issuance of common shares through private placements, and the exercise of stock options. The changes in the Company’s share capital during the last 3 fiscal years are as follows:
During the year ended December 31, 2025, the Company completed a non-brokered private placement by issuing 11,400,000 units (“Unit”) at a price of $0.05 per Unit for gross proceeds of $570,000. Each Unit consists of one common share and one non-transferable warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.075 per common share until December 29, 2028. The Company incurred share issue costs in the amount of $26,977 in connection with the financing.
During the year ended December 31, 2024, the Company issued 10,000,000 common shares. The Company completed the private placement of 10,000,000 common stock units at a price of $0.035 per unit. Each unit consisted of one common share and one non-transferable common share warrant, with each warrant exercisable into one common share at a price of $0.10 until September 5, 2027. Share issue costs of $38,887 were incurred in connection with the placement.
No common shares were issued in fiscal 2023 ended December 31, 2023.
Shares Issued for Assets Other Than Cash
The Company has not issued shares for assets other than cash during the three most recently completed fiscal years.
Shares Held By Company
No Disclosure Necessary-
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Stock Options
Stock Options to purchase securities from Registrant can be granted to Directors, Officers, Employees and Consultants of the Company on terms and conditions acceptable to the regulatory authorities in Canada, notably the TSX Venture Exchange.
The Company has a Rolling Stock Option Plan (the "Plan") which is required to be approved by shareholders annually. The Plan was initially adopted by the directors of the Company on July 29, 2008 and subsequently re-approved by shareholders at every Annual Meeting of shareholders thereafter, up to and including the Annual Meeting held on June 3, 2024. Under the Plan, stock options may be issued to qualified Officers, Directors, Employees and Consultants. The number of common shares reserved for issuance under the Plan is 10% of the currently issued common shares of the Company.
Under the Plan, the exercise price of the option may not be less than the closing price of the common shares on the TSX Venture Exchange on the day immediately preceding the date of grant, less the applicable discount allowed by the policies on the TSX Venture Exchange. An option granted under the Plan must be exercised within a period of five years from granting. Within this five year period, the Company's Board of Directors may determine the limitation period during which an option may be exercised and whether a particular grant will have a minimum vesting period. Any agreement to decrease the option price of options previously granted to insiders will require the approval of "disinterested shareholders", which is defined as approval by a majority of the votes cast at the Meeting other than votes attaching to shares of the Company beneficially owned by insiders of the Company to whom options may be granted under the Plan, and associates of such persons.
A complete copy of the Company’s Stock Option Plan as approved by shareholders at the Annual General Meeting held on June 5, 2012 has been included as an exhibit to the Company’s Form 20-F Registration Statement.
The names and titles of the Directors/Executive Officers of the Registrant to whom outstanding stock options have been granted and the numbers of common shares subject to such options are set forth in the following table as of April 22, 2026, as well as the number of options granted to Directors and all employees as a group.
Stock Options Outstanding
Name | Number of Shares of Common Stock | Number of Options Currently Vested |
CDN$ Exercise Price |
Expiration Date |
|
|
|
|
|
Paul W. Kuhn President, CEO and Director | 200,000 | 200,000 | $ 0.08 | March 14, 2027 |
|
|
|
|
|
Winnie Wong, Chief Financial Officer & Corporate Secretary | 200,000 | 200,000 | $ 0.08 | March 14, 2027 |
|
|
|
|
|
Mark T. Brown, Director | 200,000 | 200,000 | $ 0.08 | March 14, 2027 |
|
|
|
|
|
Paul Dircksen, Director | 200,000 | 200,000 | $ 0.08 | March 14, 2027 |
|
|
|
|
|
Frank Hogel, Director | 200,000 | 200,000 | $ 0.08 | March 14, 2027 |
|
|
|
|
|
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Paul Nelles, Director |
200,000 |
200,000 |
$ 0.08 |
March 14, 2027 |
|
|
|
|
|
Employees/Consultants | 375,000 | 375,000 | $ 0.08 | March 14, 2027 |
|
|
|
|
|
Total Officers and Directors | 1,200,000 | 1,200,000 |
|
|
|
|
|
|
|
Total Employees/Consultants | 375,000 | 375,000 |
|
|
|
|
|
|
|
Total Stock Options Issued and Outstanding |
1,575,000 |
1,575,000 |
|
|
Resolutions/Authorization/Approvals
-No Disclosure Necessary-
Memorandum and Articles of Association
The Company was incorporated on January 23, 2008 under the Business Corporations Act of British Columbia under the name “Everclear Capital Ltd.” On July 7, 2010, the Company changed its name to “Avrupa Minerals Ltd.” At the Annual and Special Meeting of shareholders held on December 14, 2020, shareholders approved the adoption of new Company Articles.
There are no restrictions on the business the Company may carry on in the Articles of Incorporation.
Under the Company’s articles and bylaws any director or senior officer that has a disclosable interest in a contract or transaction shall be liable to account to the Company for any profits that accrue to the director or senior officer under or as a result of the contract or transaction unless disclosure is made thereof and the contract or transaction is approved in accordance with the provisions of the Business Corporations Act of British Columbia. A director is not allowed to vote on any transaction or contract with the Company in which he has a disclosable interest unless all directors have a disclosable interest in that transaction or contract, in which case all of those directors may vote on such resolution. A director or senior officer who holds any office or possesses any property, right or interest that could result, directly or indirectly, in the creation of a duty or interest that materially conflicts with that individual's duty or interest as a director or senior officer, must disclose the nature and extent of the conflict as required by the Business Corporations Act of British Columbia.
Section 16 of the Company’s bylaws address the duties of the directors, while Part 8 discusses the Borrowing Powers. The Company may, if authorized by the directors, may:
a)borrow money in the manner and amount, on the security, from the sources and on the terms and conditions that they consider appropriate
b)issue bonds, debentures and other debt obligations either outright or as security for any liability or obligation of the Company or any other person and at such discounts or premiums and on such other terms as they consider appropriate;
c)guarantee the repayment of money by any other person or the performance of any obligation of any other person; and
d)mortgage, charge, whether by way of specific or floating charge, grant a security interest in, or give other security on, the whole or any part of the present and future assets and undertaking of the Company.
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Any bonds, debentures or other debt obligations of the Company may be issued at a discount, premium or otherwise, and with any special privileges as to redemption, surrender, drawings, allotment of or conversion into or exchange for shares or other securities, attending and voting at general meetings of the Company, appointment of directors and otherwise, and may, by their terms, be assignable free from any equities between the Company and the person to whom they were issued or any subsequent holder thereof, all as the directors may determine.
There are no age limit requirements pertaining to the retirement or non-retirement of directors and a director need not be a shareholder of the Company. At each annual general meeting of the Company, all the directors shall retire and the shareholders shall elect a Board of Directors consisting of the number of directors for the time being set pursuant the Company's Articles. A retiring director shall be eligible for re-election.
The remuneration of the directors may from time to time be determined by the directors or, if the directors shall so decide, by the shareholders. Such remuneration may be in addition to any salary or other remuneration paid to any officer or employee of the Company as such who is also a director. Directors shall be paid such reasonable travelling, hotel and other expenses as they incur in and about the business of the Company and if any director shall perform any professional or other services for the Company that in the opinion of the directors are outside the ordinary duties of a director or shall otherwise be specially occupied in or about the Company's business, he may be paid a remuneration to be fixed by the Board or, at the option of such director, by the Company in general meeting, and such remuneration my be either in addition to or in substitution for any other remuneration that he may be entitled to receive.
Subject to the Business Corporations Act of British Columbia, a director may hold any office or place of profit with the Company, other than the office of auditor with the Company, in conjunction with his office of director for such period and such terms as the directors may determine. No director or intended director shall be disqualified by his office from contracting with the Company. Subject to compliance with the Business Corporations Act of British Columbia, a director or his firm may act in a professional capacity for the Company, other than as auditor, and he or his firm shall be entitled to remuneration for professional services as if he were not a director.
Section 21 deals with indemnification and payment of expenses of directors and officers. Subject to the provisions of the Business Corporations Act of British Columbia, the directors shall cause the Company to indemnify and pay all eligible penalties and expenses of an eligible party and, where appropriate, the heirs and personal or other legal representatives of an eligible party in accordance with the provisions of the Business Corporations Act of British Columbia. Each director, alternate director and officer is deemed to have contracted with the Company on the terms of the indemnity contained in Article 21.1. The failure of a director, alternate director, or officer of the Company to comply with the provisions of the Business Corporations Act of British Columbia or these Articles shall not invalidate any indemnity to which he is entitled under this Part. The directors may cause the Company to purchase and maintain insurance for the benefit of eligible parties.
Section 27 covers the Nomination of Directors and Advance Notice Provisions which covers the nomination of persons for election to the Board of Directors of the Company. Nominations may be made at any annual or special meeting of shareholders if one of the purposes of the meeting was for the election of directors. Nominations may be made:
(a)by or at the direction of the board, including pursuant to a notice of meeting;
(b)by or at the direction or request of one or more shareholders pursuant to a proposal made in accordance with the provisions of the Act, or a requisition of the shareholders made in accordance with the provisions of the Act; or
(c)by any person (a “Nominating Shareholder”): (A) who, at the close of business on the date of the giving of the notice provided for in Section 27 and on the record date for notice of such meeting, is entered in the securities register as a holder of one or more shares carrying the right to vote at such meeting or who beneficially owns shares that are entitled to be voted at such meeting; and (B) who complies with the notice procedures set forth in Section 27.
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For a nomination to be made by a Nominating Shareholder, the Nominating Shareholder mush have given timely notice in proper written form to the Secretary of the Company at the principal executive offices of the Company. No person shall be eligible for election as a director unless nominated in accordance with Section 27. The Chairman of the meeting shall have the power and duty to determine whether a nomination was made in accordance with the required procedures and, if any such nomination is not in compliance, to declare that such defective nomination shall be disregarded. The Board may, in its sole discretion, waive any requirement of Section 27.
The majority required for the passage of a special resolution or a special separate resolution shall be 2/3 of the votes cast on the resolution.
The rights, preferences and restrictions attaching to each class of the Company’s shares are as follows:
The authorized share structure of the Company consists of an unlimited number of common shares without par value.Holders of common stock are entitled to one vote for each share held of record on all matters to be acted upon by the shareholders.Directors may from time to time declare and authorize payment of such dividends, if any, as they deem advisable and need not give notice of such declaration to any shareholder. Dividends are subject to the rights, if any, of shareholders holding shares with special rights as to dividends. No dividend shall be paid otherwise than out of funds and/or assets properly available for the payment of dividends and a declaration by the directors as the amount of such funds or assets available for dividends shall be conclusive.
The Company may by resolution of its directors make any changes to the authorized share structure as may be permitted under Section 54 of the Business Corporations Act of British Columbia, or in its name as may be permitted under Section 263 of the Business Corporations Act of British Columbia, and may by resolution of its directors make or authorize the making of any alterations to these Articles and the notice of articles as may be required by such changes. The Company may by ordinary resolution create or vary special rights and restrictions as provided in Section 58 of the Business Corporations Act of British Columbia. No alteration, as provided in Article 9, will be valid as to any part of the issued shares of any class unless the holders of all the issued shares of that class consent to the alteration in writing or consent by special separate resolution. The Company may alter its Articles by resolution of its directors and, if required by such alteration, may by resolution of its directors alter the Notice of Articles.
Subject to the provisions of the Business Corporations Act of British Columbia, the Company or the Directors on behalf of the Company, may pay a reasonable commission or allow a reasonable discount to any person in consideration of his purchasing or agreeing to purchase, whether absolutely or conditionally, any shares, debentures, share rights, warrants or debenture stock in the Company, or procuring or agreeing to procure purchasers, whether absolutely or conditionally, for any such shares, debentures, share rights, warrants or debenture stock. The Company may also pay such brokerage as may be lawful.
An annual general meeting shall be held once every calendar year at such time (not being more than 15 months after the annual reference date for the preceding calendar year) and place as may be determined by the Directors. The Directors may, as they see fit, convene an extraordinary general meeting. An extraordinary general meeting, if requisitioned in accordance with the Business Corporations Act of British Columbia, shall be convened by the Directors or, if not convened by the Directors, may be convened by the requisitionists as provided in the Business Corporations Act of British Columbia.
There are no limitations upon the rights to own securities.
There are no provisions that would have the effect of delaying, deferring, or preventing a change in control of the Company.
There is no special ownership threshold above which an ownership position must be disclosed.
The Company may alter its Notice of Articles, Articles and share structure in the following manner:
1. by directors' resolution or ordinary resolution, as determined in each case by the directors,
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a. create one or more classes or series of shares and, if none of the shares of a class or series of shares are allotted or issued, eliminate that class or series of shares and alter the identifying name of any of its shares;
b. establish, increase, reduce or eliminate the maximum number of shares that the Company is authorized to issue out of any class or series of shares;
c. if the Company is authorized to issue shares of a class of shares with par value, decrease the par value of those shares or if none of the shares of that class of shares are allotted or issued, increase the par value of those shares;
d. change unissued shares with par value into shares without par value or vice versa or change all or any of its fully paid issued shares with par value into shares without par value;
e. create, attach, vary or delete special rights or restrictions for the shares of any class or series of shares, if none of those shares have been issued;
f. subdivide all or any of its unissued, or fully paid issued, shares, and g. authorize alterations to the Articles that are procedural or administrative in nature or are matters that pursuant to the Articles are solely within the directors' powers, control or authority.
A copy of the Company’s new Articles is filed as an exhibit to this 20-F Annual Report.
Material Contracts
Not applicable
Exchange controls
Canada has no system of exchange controls.There are no Canadian restrictions on the repatriation of capital or earnings of a Canadian public company to non-resident investors.There are no laws in Canada or exchange restrictions affecting the remittance of dividends, profits, interest, royalties and other payments to non-resident holders of the Company's securities, except as discussed in ITEM 10, ”Taxation" below.
Restrictions on Share Ownership by Non-Canadians: There are no limitations under the laws of Canada or in the organizing documents of Avrupa on the right of foreigners to hold or vote securities of Avrupa, except that the Investment Canada Act may require review and approval by the Minister of Industry (Canada) of certain acquisitions of "control" of the Company by a "non-Canadian". The threshold for acquisitions of control is generally defined as being one-third or more of the voting shares of the Company. "Non-Canadian" generally means an individual who is not a Canadian citizen, or a corporation, partnership, trust or joint venture that is ultimately controlled by non-Canadians.
Taxation
The following summary of the material Canadian federal income tax consequences are stated in general terms and are not intended to be advice to any particular shareholder. Each prospective investor is urged to consult his or her own tax advisor regarding the tax consequences of his or her purchase, ownership and disposition of common stock. The tax consequences to any particular holder of common stock will vary according to the status of that holder as an individual, trust, corporation or member of a partnership, the jurisdiction in which that holder is subject to taxation, the place where that holder is resident and, generally, according to that holder’s particular circumstances.
This summary is applicable only to holders who are resident in the United States, have never been resident in Canada, deal at arm’s length with the Company, hold their common stock as capital property and who will not use or hold the
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common stock in carrying on business in Canada.Special rules, which are not discussed in this summary, may apply to a United States holder that is an issuer that carries on business in Canada and elsewhere.
This summary is based upon the provisions of the Income Tax Act of Canada and the regulations thereunder (collectively, the “Tax Act” or “ITA”) and the Canada-United States Tax Convention (the “Tax Convention”) as at the date of the Annual Report and the current administrative practices of Canada Customs and Revenue Agency.This summary does not take into account provincial income tax consequences.
Management urges each holder to consult his own tax advisor with respect to the income tax consequences applicable to him in his own particular circumstances.
Canadian Income Tax Consequences
Disposition of Common Stock
The summary below is restricted to the case of a holder (a “Holder”) of one or more common shares (“Common Shares”) who for the purposes of the Tax Act is a non-resident of Canada, holds his Common Shares as capital property and deals at arm’s length with the Company.
Dividends
A Holder will be subject to Canadian withholding tax (“Part XIII Tax”) equal to 25%, or such lower rates as may be available under an applicable tax treaty, of the gross amount of any dividend paid or deemed to be paid on his Common Shares. Under the Tax Convention, the rate of Part XIII Tax applicable to a dividend on Common Shares paid to a Holder who is a resident of the United States is, if the Holder is a company that beneficially owns at least 10% of the voting stock of the Company, 5% and, in any other case, 15% of the gross amount of the dividend. The Company will be required to withhold the applicable amount of Part XIII Tax from each dividend so paid and remit the withheld amount directly to the Receiver General for Canada for the account of the Holder.
Disposition of Common Shares
A Holder who disposes of Common Shares, including by deemed disposition on death, will not be subject to Canadian tax on any capital gain thereby realized unless the common Share constituted “taxable Canadian property” as defined by the Tax Act. Generally, a common share of a public corporation will not constitute taxable Canadian property of a Holder unless he held the common share as capital property used by him carrying on a business in Canada, or he or persons with whom he did not deal at arm’s length alone or together held or held options to acquire, at any time within the 60 months preceding the disposition, 25% or more of the issued shares of any class of the capital stock of the Company.
A Holder who is a resident of the United States and realizes a capital gain on disposition of Common Shares that was taxable Canadian property will nevertheless, by virtue of the Treaty, generally be exempt from Canadian tax thereon unless (a) more than 50% of the value of the Common Shares is derived from, or from an interest in, Canadian real estate, including Canadian mineral resources properties, (b) the Common Shares formed part of the business property of a permanent establishment that the Holder has or had in Canada within the 12 months preceding disposition, or (c) the Holder (i) was a resident of Canada at any time within the ten years immediately preceding the disposition, and for a total of 120 months during any period of 20 consecutive years, preceding the disposition, and (ii) owned the Common Shares when he ceased to be resident in Canada.
A Holder who is subject to Canadian tax in respect of a capital gain realized on disposition of Common Shares must include one half of the capital gain (“taxable capital gain”) in computing his taxable income earned in Canada. The Holder may, subject to certain limitations, deduct one half of any capital loss (“allowable capital loss”) arising on disposition of taxable Canadian property from taxable capital gains realized in the year of disposition in respect to taxable Canadian property and, to the extent not so deductible, from such taxable capital gains of any of the three preceding years or any subsequent year.
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United States Federal Income Tax Consequences
The following is a discussion of material United States Federal income tax consequences, under the law, generally applicable to a U.S. Holder (as defined below) of common shares of the Company. This discussion does not cover any state, local or foreign tax consequences.
The following discussion is based upon the sections of the Internal Revenue Code of 1986, as amended (“the Code”), Treasury Regulations, published Internal Revenue Service (“IRS) rulings, published administrative positions of the IRS and court decisions that are currently applicable, any or all of which could be materially and adversely changed, possible on a retroactive basis, at any time.In addition, the discussion does not consider the potential effects, both adverse and beneficial, or recently proposed legislation which, if enacted, could be applied, possibly on a retroactive basis, at any time. The discussion is for general information only and it is not intended to be, nor should it be construed to be, legal or tax advice to any holder or prospective holder of common shares of the Company. Each holder and prospective holder of common shares of the Company is advised to consult their own tax advisors about the federal, state, local, and foreign tax consequences of purchasing, owning and disposing of common shares of the Company applicable to their own particular circumstances.
U.S. Holders
As used herein, a (“U.S. Holder”) includes a holder of common shares of the Company who is a citizen or resident of the United States, a corporation created or organized in or under the laws of the United States or of any political subdivision thereof, an estate whose income is taxable in the United States irrespective of source or a trust subject to the primary supervision of a court within the United States and control of a United States fiduciary as described in Section 7701(a)(30) of the Code. This summary does not address the tax consequences to, and U.S. Holder does not include, persons subject to special provisions of Federal income tax law, such as tax-exempt organizations, qualified retirement plans, financial institutions, insurance companies, real estate investment trusts, regulated investment companies, broker-dealers, non-resident alien individuals, persons or entities that have a “functional currency” other than the U.S. dollar, shareholders who hold common shares as part of a straddle, hedging or conversion transaction, and shareholders who acquired their common shares through the exercise of employee stock options or otherwise as compensation for services.
This summary is limited to U.S. Holders who own common shares as capital assets. This summary does not address the consequences to a person or entity holding an interest in a shareholder or the consequences to a person of the ownership, exercise or disposition of any options, warrants or other rights to acquire common shares.
Distribution on Common Shares of the Company
U.S. Holders receiving dividend distributions (including constructive dividends) with respect to common shares of the Company are required to include in gross income for United States Federal income tax purposes the gross amount of such distributions equal to the U.S. dollar value of such distributions on the date of receipt (based on the exchange rate on such date), to the extent that the Company has current or accumulated earnings and profits, without reduction for any Canadian income tax withheld from such distributions.Such Canadian tax withheld may be credited, subject to certain limitations, against the U.S. Holder’s United States Federal Income tax liability or, alternatively, individuals may be deducted in computing the U.S. Holder’s United States Federal taxable income by those individuals who itemize deductions.(See more detailed discussion at “Foreign Tax Credit” below).To the extent that distributions exceed current or accumulated earnings and profits of the Company, they will be treated first as a return of capital up to the U.S. Holder’s adjusted basis in the common shares and thereafter as gain from the sale or exchange of the common shares. Dividend income will be taxed at marginal tax rates applicable to ordinary income while preferential tax rates for long-term capital gains are applicable to a U.S. Holder which is an individual, estate or trust.There are currently no preferential tax rates for long-term capital gains for a U.S. Holder which is a corporation.
In the case of foreign currency received as a dividend that is not converted by the recipient into U.S. dollars on the date of receipt, a U.S. Holder will have a tax basis in the foreign currency equal to its U.S. dollar value on the date of receipt. Generally any gain or loss recognized upon a subsequent sale of other disposition of the foreign currency, including the exchange for U.S. dollars, will be ordinary income or loss.
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Dividends paid on the common shares of the Company will not generally be eligible for the dividends received deduction provided to corporations receiving dividends from certain United States corporations.A U.S. Holder which is a corporation may, under certain circumstances, be entitled to a 70% deduction of the United States source portion of dividends received from the Company (unless the Company qualifies as a “foreign personal holding company” or a “passive foreign investment company”, as defined below) if such U.S. Holder owns shares representing at least 10% of the voting power and value of the Company.The availability of this deduction is subject to several complex limitations which are beyond the scope of this discussion.
Under current Treasury Regulations, dividends paid on the Company’s common shares, if any, generally will not be subject to information reporting and generally will not be subject to U.S. backup withholding tax. However, dividends and the proceeds from a sale of the Company’s common shares paid in the U.S. through a U.S. or U.S. related paying agent (including a broker) will be subject to U.S. information reporting requirements and may also be subject to the 31% U.S. backup withholding tax, unless the paying agent is furnished with a duly completed and signed Form W-9. Any amounts withheld under the U.S. backup withholding tax rules will be allowed as a refund or a credit against the U.S. Holder’s U.S. federal income tax liability, provided the required information is furnished to the IRS.
Foreign Tax Credit
For individuals whose entire income from sources outside the United States consists of qualified passive income, the total amount of creditable foreign taxes paid or accrued during the taxable year does not exceed $300 ($600 in the case of a joint return) and an election is made under section 904(j), the limitation on credit does not apply.
A U.S. Holder who pays (or has withheld from distributions) Canadian income tax with respect to the ownership of common shares of the Company may be entitled, at the option of the U.S. Holder, to either a deduction or a tax credit for such foreign tax paid or withheld.Generally, it will be more advantageous to claim a credit because a credit reduces United States Federal income taxes on a dollar-for-dollar basis, while a deduction merely reduces the taxpayer’s income subject to tax.This election is made on a year-by-year basis and applies to all foreign income taxes (or taxes in lieu of income tax) paid by (or withheld from) the U.S. Holder during the year.There are significant and complex limitations which apply to the credit, among which is the general limitation that the credit cannot exceed the proportionate share of the U.S. Holder’s United States income tax liability that the U.S. Holder’s foreign source income bears to his/her or its worldwide taxable income in the determination of the application of this limitation. The various items of income and deduction must be classified into foreign and domestic sources. Complex rules govern this classification process.In addition, this limitation is calculated separately with respect to specific classes of income such as “passive income”, “high withholding tax interest”, “financial services income”, “shipping income”, and certain other classifications of income. Dividends distributed by the Company will generally constitute “passive income” or, in the case of certain U.S. Holders, “financial services income” for these purposes.The availability of the foreign tax credit and the application of the limitations on the credit are fact specific and management urges holders and prospective holders of common shares of the Company to consult their own tax advisors regarding their individual circumstances.
Disposition of Common Shares of the Company
A U.S. Holder will recognize gain or loss upon the sale of common shares of the Company equal to the difference, if any, between (I) the amount of cash plus the fair market value of any property received, and (ii) the shareholder’s tax basis in the common shares of the Company.Preferential tax rates apply to long-term capital gains of U.S. Holders, which are individuals, estates or trusts. This gain or loss will be capital gain or loss if the common shares are capital assets in the hands of the U.S. Holder, which will be a short-term or long-term capital gain or loss depending upon the holding period of the U.S. Holder.Gains and losses are netted and combined according to special rules in arriving at the overall capital gain or loss for a particular tax year.Deductions for net capital losses are subject to significant limitations.For U.S. Holders, which are not corporations, any unused portion of such net capital loss may be carried over to be used in later tax years until such net capital loss is thereby exhausted, but individuals may not carry back capital losses. For U.S. Holders, which are corporations (other than corporations subject to Subchapter S of the Code), an unused net capital loss may be carried back three years from the loss year and carried forward five years from the loss year to be offset against capital gains until such net capital loss is thereby exhausted.
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Other Considerations
In the following circumstances, the above sections of the discussion may not describe the United States Federal income tax consequences resulting from the holding and disposition of common shares of the Company.
Foreign Personal Holding Company
If at any time during a taxable year more than 50% of the total combined voting power or the total value of the Company’s outstanding shares is owned, actually or constructively, by five or fewer individuals who are citizens or residents of the United States and 60% (50% after the first tax year) or more of the Company’s gross income for such year was derived from certain passive sources (e.g. from interest income received from its subsidiaries), the Company would be treated as a “foreign personal holding company.” In that event, U.S. Holders that hold common shares of the Company would be required to include in gross income for such year their allocable portions of such passive income to the extent the Company does not actually distribute such income.
The Company does not believe that it currently has the status of a “foreign personal holding company”. However, there can be no assurance that the Company will not be considered a foreign personal holding company for the current or any future taxable year.
Foreign Investment Company
If 50% or more of the combined voting power or total value of the Company’s outstanding shares are held, actually or constructively, by citizens or residents of the United States, United States domestic partnerships or corporations, or estates or trusts other than foreign estates or trusts (as defined by the Code Section 7701(a)(31), and the Company is found to be engaged primarily in the business of investing, reinvesting, or trading in securities, commodities, or any interest therein, it is possible that the Company might be treated as a “foreign investment company” as defined in Section 1246 of the Code, causing all or part of any gain realized by a U.S. Holder selling or exchanging common shares of the Company to be treated as ordinary income rather than capital gains.
Passive Foreign Investment Company
As a foreign corporation with U.S. Holders, the Company could potentially be treated as a passive foreign investment company (“PFIC”), as defined in Section 1297 of the Code, depending upon the percentage of the Company’s income which is passive, or the percentage of the Company’s assets which is held for the purpose of producing passive income.
The rule governing PFICs can have significant tax effects on U.S. shareholders of foreign corporations who are subject to U.S. Federal income taxation under alternative methods at the election of each such U.S. shareholder.As a PFIC, each U.S. shareholder’s income or gain, with respect to a disposition or deemed disposition of the PFIC’s shares or a distribution payable on such shares will generally be subject to tax at the highest marginal rates applicable to ordinary income and certain interest charges, unless the U.S. shareholder has timely made a “qualified electing fund” election or a “mark-to-market” election for those shares.
A U.S. shareholder who elects to treat the PFIC as a Qualified Electing Fund ("QEF"), as defined in the Code, (an "Electing U.S. Holder") will be required to currently include in his income, for any taxable year in which the corporation qualifies as a PFIC, his pro-rata share of the corporation's (i) "net capital gain" (the excess of net long-term capital gain over net short-term capital loss), which will be taxed as long-term capital gain to the Electing U.S. Holder, and (ii) "ordinary earnings" (the excess of earnings and profits over net capital gain), which will be taxed as ordinary income to the Electing U.S. Holder, in each case, for the U.S. Holder's taxable year in which the corporation’s taxable year ends, regardless of whether such amounts are actually distributed. A QEF election also allows the Electing U.S. Holder to generally treat any gain realized on the disposition of his common shares (or deemed to be realized on the pledge of his common shares) as capital gain; treat his share of the corporation's net capital gain, if any, as long-term capital gain instead of ordinary income, and either avoid interest charges resulting
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from PFIC status altogether, or make an annual election, subject to certain limitations, to defer payment of current taxes on his share of the corporation's annual realized net capital gain and ordinary earnings.
The procedure a U.S. Holder must comply with in making a timely QEF election will depend on whether the year of the election is the first year in the U.S. Holder's holding period in which the corporation is a PFIC. If the U.S. shareholder makes a QEF election in such first year, then the U.S. shareholder may make the QEF election by simply filing the appropriate documents at the time the U.S. Holder files a tax return for such first year. If, however, the corporation qualified as a PFIC in a prior year during the U.S. shareholder’s holding period, then the U.S. shareholder may make a retroactive QEF election, provided he has preserved his right to do so under the protective statement regime or he obtains IRS permission.
If a U.S. shareholder has not made a QEF Election at any time (a "Non-electing U.S. Holder"), then special taxation rules under Section 1291 of the Code will apply to gains realized on the disposition (or deemed to be realized by reason of a pledge) of his common shares, and certain "excess distributions" by the corporation. An excess distribution is a current year distribution received by the U.S. shareholder on PFIC stock to the extent that the distribution exceeds its ratable portion of 125% of the average amount received by the U.S. shareholder during the preceding three years.
A Non-electing U.S. shareholder generally would be required to pro-rate all gains realized on the disposition of his common shares and all excess distributions over the entire holding period for the common shares. All gains or excess distributions allocated to prior years of the U.S. shareholder (other than years prior to the first taxable year of the corporation during such U.S. Holder's holding period and beginning after January 1, 1987 for which it was a PFIC) would be taxed at the highest marginal tax rate for each such prior year applicable to ordinary income. The Non-electing U.S. shareholder also would be liable for interest on the foregoing tax liability for each such prior year calculated as if such liability had been due with respect to each such prior year. A Non-electing non-corporate U.S. shareholder must treat this interest charge as "personal interest" which is wholly non-deductible. The balance of the gain or the excess distribution will be treated as ordinary income in the year of the disposition or distribution, and no interest charge will be incurred with respect to such balance.
If a corporation is a PFIC for any taxable year during which a Non-electing U.S. shareholder holds common shares, then the corporation will continue to be treated as a PFIC with respect to such common shares, even if it is no longer by definition a PFIC. A Non-electing U.S. shareholder may terminate this deemed PFIC status by electing to recognize a gain, which will be taxed under the rules for Non-Electing U.S. Holders, as if such common shares had been sold on the last day of the last taxable year for which it was a PFIC. If the corporation no longer qualifies as a PFIC in a subsequent year, then normal Code rules and not the PFIC rules will apply with respect to a U.S. shareholder who has made a QEF election.
In certain circumstances, a U.S. Holder of stock in a PFIC can make a “qualified electing fund election” to mitigate some of the adverse tax consequences of holding stock in a PFIC by including in income its share of the corporation’s income on a current basis. However, the Company does not currently intend to prepare or provide the information that would enable you to make a qualified electing fund election. Management urges US persons to consult with their own tax advisors with regards to the impact of these rules.
Controlled Foreign Corporation
A Controlled Foreign Corporation (CFC) is a foreign corporation more than 50% of whose stock by vote or value is, on any day in the corporation’s tax year, owned (directly or indirectly) by U.S. Shareholders. If more than 50% of the voting power of all classes of stock entitled to vote is owned, actually or constructively, by citizens or residents of the United States, United States domestic partnerships and corporations or estates or trusts other than foreign estates or trusts, each of whom own actually or constructively 10% or more of the total combined voting power of all classes of stock of the Company could be treated as a “controlled foreign corporation” under Subpart F of the Code.This classification would affect many complex results, one of which is the inclusion of certain income of a CFC, which is subject to current U.S. tax. The United States generally taxes United States Shareholders of a CFC currently on their pro rata shares of the Subpart F income of the CFC. Such United States Shareholders are generally treated as having received a current
73
distribution out of the CFC’s Subpart F income and are also subject to current U.S. tax on their pro rata shares of the CFC’s earnings invested in U.S. property. The foreign tax credit described above may reduce the U.S. tax on these amounts.
In addition, under Section 1248 of the Code, gain from the sale or exchange of shares by a U.S. Holder of common shares of the Corporation which is or was a United States Shareholder at any time during the five-year period ending with the sale or exchange is treated as ordinary income to the extent of earnings and profits of the Company (accumulated in corporate tax years beginning after 1962, but only while the shares were held and while the Company was “controlled”) attributable to the shares sold or exchanged. If a foreign corporation is both a PFIC and a CFC, the foreign corporation generally will not be treated as a PFIC with respect to the United States Shareholders of the CFC. This rule generally will be effective for taxable years of United States Shareholders beginning after 1997 and for taxable years of foreign corporations ending with or within such taxable years of United States Shareholders. The PFIC provisions continue to apply in the case of PFIC that is also a CFC with respect to the U.S. Holders that are less than 10% shareholders. Because of the complexity of Subpart F, a more detailed review of these rules is outside of the scope of this discussion.
The amount of any backup withholding will not constitute additional tax and will be allowed as a credit against the U.S. Holder’s federal income tax liability.
Filing of Information Returns
Under a number of circumstances, United States Investor acquiring shares of the Company may be required to file an information return with the Internal Revenue Service Center where they are required to file their tax returns with a duplicate copy to the Internal Revenue Service Center, Philadelphia, PA 19255. In particular, any United States Investor who becomes the owner, directly or indirectly, of 10% or more of the shares of the Company will be required to file such a return. Other filing requirements may apply, and management urges United States Investors to consult their own tax advisors concerning these requirements.
Statement by Experts
The Company’s auditors for its financial statements as at December 31, 2025, 2024 and 2023 was DeVisser Gray LLP, Chartered Accountants. Their audit report is included with the related financial statements within this Annual Report.
Documents on Display
All documents incorporated in the Company’s 20-F Registration Statement and this Annual Report may be viewed at the Company’s Executive Office located at 410 – 325 Howe Street, Vancouver, British Columbia, Canada, V6C 1Z7.
Item 11.Disclosures About Market Risk
The Company competes with other resource companies for exploration properties and possible joint venture agreements.There is a risk that this competition could increase the difficulty of concluding a negotiation on terms that the Company considers acceptable.
The Company’s property interests in Portugal, Finland and Kosovo make it subject to foreign currency fluctuations and inflationary pressures which may adversely affect the Company’s financial position, results of operations and cash flows. The Company is affected by changes in exchange rates between the Canadian Dollar and foreign functional currencies. The Company does not invest in foreign currency contracts to mitigate the risks. The Company has net monetary assets of $13,700 dominated in Euros. A 1% change in the absolute rate of exchange in US dollars and Euros would affect its net income by $5,100.
As the Company is currently in the exploration phase and has no producing mineral properties, it is not currently exposed to commodity price risk.
74
Item 12.Description of Securities Other than Equity Securities
Not Applicable
Part II
Item 13.Defaults, Dividend Arrearages and Delinquencies
Not Applicable
Item 14.Modifications of Rights of Securities Holders and Use of Proceeds
Not Applicable
Item 15.Controls and Procedures
Disclosure Controls and Procedures
The Company’s management is responsible for establishing and maintaining disclosure controls and procedures to provide reasonable assurance that material information related to the Company, including its consolidated subsidiaries, is made known to senior management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), by others within those entities on a timely basis so that appropriate decisions can be made regarding public disclosure.
We carried out an evaluation, under the supervision and with the participation of our management, including our Principal Executive Officer and our Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) under the Securities and Exchange Act of 1934, as amended) as December 31, 2024. The Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures as of December 31, 2025, were effective to give reasonable assurance that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to management, including the Chief Executive Office and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Management’s Annual Report on Internal Control over Financial Reporting
The Company’s management is responsible for designing, establishing and maintaining a system of internal controls over financial reporting (as defined in Exchange Act Rule 13a-15(f)) to provide reasonable assurance that the financial information prepared by the Company for external purposes is reliable and has been recorded, processed and reported in an accurate and timely manner in accordance with IFRS.The Board of Directors is responsible for ensuring that management fulfills its responsibilities. The Audit Committee fulfills its role of ensuring the integrity of the reported information through its review of the interim and annual financial statements.Management reviewed the results of their assessment with the Company’s Audit Committee.
Because of its inherent limitations, the Company’s internal control over financial reporting may not prevent or detect all possible misstatements or frauds.Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.
To evaluate the effectiveness of the Company’s internal control over financial reporting, Management has used the Internal Control - Integrated Framework (2013), which is a suitable, recognized control framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).Management has assessed the effectiveness of the Company’s internal control over financial reporting and concluded that such internal control over financial reporting is effective as of December 31, 2025.
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Limitations on the Effectiveness of Controls
The Company's management, including the CEO and CFO, does not expect that our Disclosure Controls or our Internal Controls will prevent all error and all fraud.A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs.Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control.The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed achieving its stated goals under all potential future conditions; over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
Attestation Report of the Registered Accounting Firm.
This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Form 20-F Annual Report.
Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
Item 16.Reserved
Item 16A.Audit Committee Financial Expert
The Company does not have an “audit committee financial expert” serving on its audit committee.The Company’s Audit Committee consists of three directors (two independent), all of whom are both financially literate and very knowledgeable about the Company’s affairs.Because the Company’s structure and operations are straightforward, the Company does not find it necessary at the current time to augment its Board with a financial expert.
Item 16B.Code of Ethics
The Board has not adopted a written code of ethics. However, the Board views good corporate governance as an integral component to the Company’s success. It has found that the fiduciary duties placed on individual directors by the Company’s governing corporate legislation and the common law and the restrictions placed by the applicable corporate legislation on an individual director’s participation in decisions of the Board in which the director has an interest have been sufficient to ensure that the Board operates independently of management and in the best interests of the Company.
Item 16C.Principal Accounting Fees and Services
The audit committee is directly responsible for the appointment, compensation and oversight of auditors; the audit committee has in place procedures for receiving complaints and concerns about accounting and auditing matters; and has the authority and the funding to engage independent counsel and other outside advisors.
The Audit Committee may delegate to one or more designated members of the Audit Committee the authority to grant pre-approvals required by this policy / procedure.The decisions of any Audit Committee member to whom authority is delegated to pre-approve a service shall be presented to the full Audit Committee at its next scheduled meeting.
76
In accordance with the requirements of the US Sarbanes-Oxley Act of 2002 and rules issued by the Securities and Exchange Commission, we introduced a procedure for the review and pre-approval of any services performed by DeVisser Gray LLP, including audit services, audit related services, tax services and other services.The procedure requires that all proposed engagements of DeVisser Gray LLP for audit and permitted non-audit services are submitted to the finance and audit committee for approval prior to the beginning of any such services.
Fees, including reimbursements for expenses, for professional services rendered by DeVisser Gray LLP to the Company are detailed below.
Principal Accountant Fees and Services | Fiscal 2025 Ended 12/31/2025 | Fiscal 2024 Ended 12/31/2024 |
Audit Fees | $ 23,000 | $ 22,000 |
Audit-Related Fees |
| - |
Tax Fees | - | - |
All Other Fees | - | - |
TOTAL | $ 23,000 | $ 22,000 |
Item 16D.Exemptions from the Listing Standards for Audit Committees
--- No Disclosure Necessary ---
Item 16E.Purchases of Equity Securities by the Issuer and Affiliated Purchasers
--- No Disclosure Necessary ---
Item 16F.Change in Registrant’s Certifying Accountant
--- No Disclosure Necessary ---
Item 16G.Corporate Governance
--- No Disclosure Necessary ---
Item 16H.Mine Safety Disclosure
--- No Disclosure Necessary ---
Item 16I.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
--- No Disclosure Necessary ---
Item 16J.Insider Trading Policies
The Company has not adopted insider trading policies and procedures governing the purchase or sale of the Company’s stock by directors, management or employees. The Board of Directors believes that providing insiders and employees with guidance and education of the governing securities regulations, particularly those of the British Columbia Securities Commission and the TSX Venture Exchange, is sufficient to promote compliance with applicable insider trading laws.
Item 16K.Cybersecurity
Risk Management and Strategy
The Company currently manages our cybersecurity risk through our IT consultants in a variety of practices that are applicable to all users of our information technology and information assets, including our employees, vendors and contractors.The Company uses a combination of technology and monitoring to promote security awareness and prevent security incidents, including network and passwords protocols, rotation of security measures and third party firewalls and antivirus protections.
77
We have not experienced any material cybersecurity incidents or identified any material cybersecurity threats that have affected or are reasonably likely to materially affect us, our business strategy, results of operations or financial condition.
Governance
The Board of Directors is responsible for overseeing risks related to cybersecurity.The Company's senior management of the President and Chief Financial Officer are responsible for assessing and managing risks and incidents relating to cybersecurity threats. They report any material findings and recommendations, if any, to the Board of Directors.
Part III
Item 17.Financial Statements
The Company has provided financial statements pursuant to ITEM #18.
Item 18.Financial Statements
The Company's financial statements are stated in Canadian Dollars (CDN$) and are prepared in accordance with IFRS.
The financial statements as required under ITEM #18 are attached hereto and found immediately following the text of this Annual Report.The audit report of DeVisser Gray LLP, Chartered Accountants, is included herein immediately preceding the financial statements.
Item 19.Exhibits
(A) The financial statements thereto as required under ITEM #18 are attached hereto and found immediately following the text of this Annual Report.The audit report of DeVissser Gray LLP, Chartered Accountants, for the audited financial statements is included herein immediately preceding the audited financial statements.
·Audited Financial Statements
·Independent Auditors Report of DeVisser Gray LLP, Chartered Accountants, dated April 30, 2026.
·Consolidated Statements of Financial Position at December 31, 2025, and December 31, 2024.
·Consolidated Statements of Comprehensive Loss for the years ended December 31, 2025, December 31, 2024 and December 31, 2023.
·Consolidated Statements of Cash Flows for the years ended December 31, 2025, December 31, 2024 and December 31, 2023.
·Consolidated Statements of Changes in Equity for the years ended December 31, 2025 and December 31, 2024.
·Notes to Financial Statements
(B) Index to Exhibits:
1.Certificate of Incorporation, Certificates of Name Change, Articles of Incorporation, Articles of Amalgamation and By-Laws:
1.1Certificate of Incorporation and Notice of Articles dated January 23, 2008**
1.2Articles and Bylaws (British Columbia) dated January 23, 2008*
1.3Certificate of Name Change dated July 7, 2010**
1.4New Articles and Bylaws as approved by shareholders on December 14, 2020
2.Instruments defining the rights of holders of the securities being registered – See Exhibit Number 1
78
3.Voting Trust Agreements – not applicable
4.Material Contracts – not applicable
5.List of Foreign Patents – not applicable
6.Calculation of earnings per share – not applicable
7.Explanation of calculation of ratios – not applicable
9.Statement pursuant to the instructions to Item 8.A.4, regarding the financial statements filed in registration statements for initial public offerings of securities – not applicable
10.Notice Required by Rule 104 of Regulation BTR – not applicable
11 Code of Ethics – not applicable
12Certifications required by Rule 13a-14(a) or Rule 15d-14(a)
12.1 CEO
12.2 CFO
13Certifications required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code
13.1 CEO
13.2 CFO
14.Legal Opinion required by Instruction 3 of ITEM 7B – not applicable
15.Additional Exhibits:
15.1Consent of DeVisser Gray LLP, Chartered Accountants, dated June 20, 2012***
15.2Copy of Stock Option Plan*
_________
*Incorporated by reference to the registrant’s Form 20FR filed with the Securities Exchange Commission on June 4, 2012.
**Incorporated by reference to the registrant’s Form 20FR filed with the Securities Exchange Commission on October 5, 2012.
***Incorporated by reference to the registrant’s Form 20FR filed with the Securities Exchange Commission on October 24, 2012.
79
AVRUPA MINERALS LTD.
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED
DECEMBER 31, 2025, 2024 AND 2023
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AVRUPA MINERALS LTD.
Contents
| Page |
410 – 325 Howe Street, Vancouver, BC V6C 1Z7 T: (604) 687-3520 F: 1 (888) 889-4874
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Avrupa Minerals Ltd.,
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Avrupa Minerals Ltd. (‘the Company’), which comprise the consolidated statements of financial position as at December 31, 2025 and 2024 and the consolidated statements of comprehensive loss, changes in equity and cash flows for the years ended December 31, 2025, 2024 and 2023, and the related notes and schedules (collectively referred to as the ‘consolidated financial statements’). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2025 and 2024 and its financial performance and its cash flows for the years ended December 31, 2025, 2024 and 2023, in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board.
Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 in the consolidated financial statements, it will be necessary for the Company to obtain additional financing and while it has been successful in the past, there can be no assurance that it will be able to do so in the future. These conditions, along with other matters as set forth in Note 1, raise substantial doubt about the Company's ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The principal considerations for our determination that the going concern uncertainty was a critical audit matter were: (i) that the formal reporting of such uncertainty involves a significant disclosure, the absence of which could constitute a material misstatement to a financial statement reader and, (ii) that, at the same time, it involves on our part the use of a high level of subjective judgement as we are required to consider the possible impact of future events that cannot currently be known and which in all likelihood will not be directly linked to any particular current or future financial results and reporting, or the lack thereof.
Addressing this matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures also included, among others, (i) obtaining and evaluating management’s assessment of the Company’s ability to remain a going concern; (ii) determining based on all other evidence available to us whether management’s assessment appeared to be fair and reasonable in the circumstances and, (iii) considering whether the resultant disclosure of these matters herein was consistent with the foregoing, in the context of the Company’s overall business activities, objectives and financial history.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (‘PCAOB’) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free of material misstatement, whether due to fraud or error. The Company is not required to have, nor were we engaged to perform, an audit of internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
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Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (i) relates to accounts or disclosures that are material to the consolidated financial statements; and (ii) involved, on our part, especially challenging, subjective, or complex judgements. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating this critical audit matter, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
CHARTERED PROFESSIONAL ACCOUNTANTS
April 30, 2026
We have served as the Company’s auditor since 2008.
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AVRUPA MINERALS LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT DECEMBER 31
(Presented in Canadian Dollars)
| Note | 2025 | 2024 | ||
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Assets |
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Current assets |
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Cash |
| $ | $ | ||
Prepaid expenses and advances |
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Due from optionee | 5 |
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Sales tax receivables |
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Other receivables |
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Non-current assets |
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Property deposit | 5, 6 |
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Advance to related party | 9 |
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Tax deposits | 6 |
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Exploration and evaluation assets | 5 |
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Equipment | 4 |
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Investment in PorMining | 5 |
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Investment in AVU Kosova LLC | 5, 7 |
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Advance to Akkerman Finland OY | 7 |
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Investment in Akkerman Finland OY | 7 |
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Total assets |
| $ | $ | ||
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Liabilities |
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Current liabilities |
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Accounts payable and accrued liabilities |
| $ | $ | ||
Due to related parties | 9 |
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Non-current liabilities |
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Due to Sandfire MATSA | 5 |
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Shareholders' equity |
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Share capital | 8 |
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Reserves | 8 |
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Deficit |
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Total shareholders' equity and liabilities |
| $ | $ | ||
Event after the reporting period (Note 6)
These consolidated financial statements are authorized for issue by the Board of Directors on April 30, 2026. They are signed on the Company's behalf by:
/s/Paul W. Kuhn |
| /s/Mark T. Brown |
Director |
| Director |
See notes to the consolidated financial statements
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AVRUPA MINERALS LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31
(Presented in Canadian Dollars)
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| Note | 2025 | 2024 | 2023 | |||
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Mineral exploration expenses |
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Mineral exploration expenses | 5 | $ | $ | $ | |||
Reimbursements from optionees | 5, 9 |
| ( |
| ( |
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General administrative expenses |
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Bank charges |
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Bad debt (recovery) |
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Consulting fees, wages and benefits | 9 |
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Depreciation | 4 |
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Investor relations |
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Listing and filing fees |
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Office and administrative fees |
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Professional fees | 9 |
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|
| |||
Rent | 9 |
|
|
| |||
Transfer agent fees |
|
|
|
| |||
Travel |
|
|
|
| |||
|
| ( |
| ( |
| ( | |
Other items |
|
|
|
|
|
|
|
Foreign exchange loss |
|
| ( |
| ( |
| ( |
Interest income |
|
|
|
| |||
Loss on investment in Akkerman Finland OY | 7 |
| ( |
| ( |
| ( |
Loss on derecognition of a former subsidiary | 7 |
| ( |
|
| ||
Gain on acquiring PorMining | 5 |
|
|
| |||
Write-down of property deposits |
|
|
|
| ( | ||
|
|
| ( |
| ( | ||
|
|
|
|
|
|
|
|
Net loss for the year |
|
| ( |
| ( |
| ( |
Exchange difference arising on the translation of foreign subsidiaries |
|
| ( |
|
| ||
|
|
|
|
|
|
|
|
Comprehensive loss for the year |
| $ | ( | $ | ( | $ | ( |
Basic and diluted loss per share | 10 | $ | ( | $ | ( | $ | ( |
See notes to the consolidated financial statements
85
AVRUPA MINERALS LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN (DEFICIENCY) / EQUITY
(Presented in Canadian Dollars)
| Share capital |
| Reserves |
|
| |||||
Number of shares | Amount |
| Warrants | Finder’s options | Equity-settled employee benefits | Exchange | Subtotal | Deficit | Total shareholders' equity | |
|
|
|
|
|
|
|
|
|
|
|
Balance as at December 31, 2022 | $ |
| $ | $ | $ | $ ( | $ | $ ( | $ | |
Comprehensive loss |
| ( | ( | |||||||
Balance as at December 31, 2023 |
| ( | ( | |||||||
Share issues: |
|
|
|
|
|
|
|
|
|
|
Shares issued for private placements |
| |||||||||
Share issue costs | - | ( |
| ( | ||||||
Comprehensive loss | - |
| ( | ( | ||||||
Balance as at December 31, 2024 |
| ( | ( | |||||||
Share issues: |
|
|
|
|
|
|
|
|
|
|
Shares issued for private placement |
| |||||||||
Share issue costs | - | ( |
| ( | ||||||
Comprehensive loss | - |
| ( | ( | ( | ( | ||||
Balance as at December 31, 2025 | $ |
| $ | $ | $ | $ ( | $ | $ ( | $ | |
See notes to the consolidated financial statements
86
AVRUPA MINERALS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31
(Presented in Canadian Dollars)
| 2025 | 2024 | 2023 | |||
|
|
| ||||
Cash flows from operating activities |
|
|
|
|
|
|
Net loss for the year | $ | ( | $ | ( | $ | ( |
Items not involving cash: |
|
|
|
|
|
|
Depreciation |
|
|
| |||
Bad debt (recovery) |
|
| ( |
| ||
Gain on acquiring PorMining |
| ( |
|
| ||
Loss on derecognition of a former subsidiary |
|
|
| |||
Loss on investment in Akkerman Finland OY |
|
|
| |||
Write-down of property deposits |
|
|
| |||
Changes in non-cash working capital items: |
|
|
|
|
|
|
Sales tax receivables |
|
| ( |
| ( | |
Due from optionee |
|
| ( |
| ( | |
Advance to related party |
| ( |
| ( |
| ( |
Prepaid expenses and advances |
| ( |
| ( |
| |
Other receivables |
|
|
| ( | ||
Accounts payable and accrued liabilities |
| ( |
| ( |
| ( |
Due to related parties |
|
|
| ( | ||
Exchange difference arising on the translation of foreign subsidiaries |
| ( |
|
| ||
|
|
|
|
|
|
|
Net cash (used in) operating activities |
| ( |
| ( |
| ( |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Advance to Akkerman Finland OY |
|
| ( |
| ||
Investment in PorMining |
| ( |
|
| ||
Net cash from acquisition of PorMining |
|
|
| |||
Loss on cash from derecognition of a former subsidiary |
| ( |
|
| ||
Purchase of equipment |
|
| ( |
| ||
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
|
| ( |
| ||
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Proceeds from issuance of common shares |
|
|
| |||
Share issue costs |
| ( |
| ( |
| |
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
| |||
|
|
|
|
|
|
|
Change in cash for the year |
|
|
| ( | ||
Cash, beginning of the year |
|
|
| |||
Cash, end of the year | $ | $ | $ | |||
Supplemental disclosure with respect to cash flows (Note 12)
See notes to the consolidated financial statements
87
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
1.NATURE OF OPERATIONS AND CONTINUANCE OF OPERATIONS
Avrupa Minerals Ltd. (the “Company”) was incorporated on
These consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, which assumes that the Company will be able to meet its commitments, continue operations and realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. There are material uncertainties that cast significant doubt about the appropriateness of the going concern assumption.
If the Company is to advance or develop its mineral properties further, it will be necessary to obtain additional financing and while it has been successful in the past, there can be no assurance that it will be able to do so in the future. Failure to raise sufficient funds would result in the Company’s inability to make future required property payments, which would result in the loss of those property options.
These consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and statement of financial position classifications that would be necessary were the going concern assumption inappropriate, and these adjustments could be material.
2.BASIS OF PREPARATION
a)Statement of compliance
These consolidated financial statements have been prepared in accordance and compliance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”).
b)Basis of preparation
These consolidated financial statements have been prepared on a historical cost basis except certain financial instruments which are measured at fair value (‘FVPL”). In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.
These consolidated financial statements, including comparatives, have been prepared on the basis of IFRS standards that are effective as at December 31, 2025.
88
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
3.MATERIAL ACCOUNTING POLICY INFORMATION
a)Basis of consolidation
These consolidated financial statements include the accounts of the Company and its subsidiaries as follows:
% of ownership | Jurisdiction | Nature of operations | |
|
|
|
|
MAEPA Empreendimentos Mineiros e Participacoes Lda | |||
PorMining, Unipessoal Lda | |||
Innomatik Exploration Kosovo LLC | |||
AVU Kosova LLC (1) | |||
Akkerman Finland OY (1) |
(1)
All subsidiaries are entities that are controlled, either directly or indirectly. Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when the Company has existing rights that give it the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a company’s share capital. All of the intra-group balances and transactions, including unrealized profits and losses arising from intra-group transactions, have been eliminated in full. For subsidiaries that the Company controls, but does not own 100% of, the net assets and net profit attributable to outside shareholders are presented as amounts attributable to non-controlling interests in the consolidated statements of financial position and consolidated statements of comprehensive loss.
Inter-company balances and transactions, including unrealized income and expenses arising from inter-company transactions, are eliminated in preparing the consolidated financial statements.
b)Interests in Joint Arrangements
A joint arrangement can take the form of a joint venture or joint operation. All joint arrangements involve a contractual arrangement that establishes joint control, which exists only when decisions about the activities that significantly affect the returns of the investee require unanimous consent of the parties sharing control. A joint operation is a joint arrangement in which the Company has rights to the assets and obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement in which the Company has rights to only the net assets of the arrangement.
Joint ventures are accounted for in accordance with the policy “Investments in Associates and Joint Ventures.” Joint operations are accounted for by recognizing the Company’s share of the assets, liabilities, revenue, expenses and cash flows of the joint operation in the consolidated financial statements.
89
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
3.MATERIAL ACCOUNTING POLICY INFORMATION (Continued)
c)Investments in Associates and Joint Ventures
Investments over which the Company exercises significant influence and which it does not control or jointly control are associates. Investments in associates are accounted for using the equity method, except when classified as held for sale. Investments in joint ventures as determined in accordance with the policy “Interests in Joint Arrangements” are also accounted for using the equity method.
The equity method involves recording the initial investment at cost and subsequently adjusting the carrying value of the investment for the Company’s proportionate share of the profit or loss, other comprehensive income or loss and any other changes in the associate’s or joint venture’s net assets.
The Company’s proportionate share of the associate’s or joint venture’s profit or loss and other comprehensive income or loss is based on its most recent financial statements. Adjustments are made to align any inconsistencies between the Company’s accounting policies and the associate’s or joint venture’s policies before applying the equity method. Adjustments are also made to account for depreciable assets based on their fair values at the acquisition date of the investment and for any impairment losses recognized by the associate or joint venture.
If the Company’s share of the associate’s or joint venture’s losses equals or exceeds the investment in the associate or joint venture, recognition of further losses is discontinued. After the Company’s interest is reduced to zero, additional losses will be provided for and a liability recognized only to the extent that the Company has incurred legal or constructive obligations to provide additional funding or make payments on behalf of the associate or joint venture. If the associate or joint venture subsequently reports profits, the Company resumes recognizing its share of those profits only after its share of the profits equals the share of losses not recognized.
At each statement of financial position date, management considers whether there is objective evidence of impairment in associates and joint ventures. If there is such evidence, management determines if there is a need to record an impairment in relation to the associate or joint venture.
d)Foreign currencies
The Company assesses functional currency on an entity by entity basis based on the related fact pattern; however, the presentation currency used in these consolidated financial statements is determined at management’s discretion.
The currency of the parent company, and the presentation currency applicable to these consolidated financial statements, is the Canadian dollar.
Transactions in currencies other than the functional currency are recorded at the rates of the exchange prevailing on dates of transactions.At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at each reporting date. Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date the fair value was determined.Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
The Company has determined that the functional currency of its wholly-owned subsidiaries in Europe is the Euro.Exchange differences arising from the translation of the subsidiaries’ functional currencies into the Company’s presentation currency are taken directly to the exchange reserve.
90
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
3.MATERIAL ACCOUNTING POLICY INFORMATION (Continued)
d)Foreign currencies (Continued)
Subsidiaries
The results and financial position of the Company’s subsidiaries that have a functional currency different from the Company’s presentation currency are translated into the presentation currency as follows:
·Assets and liabilities are translated at the closing rate at the reporting date;
·Income and expenses are translated at average exchange rates for the period;
·Equity is translated using historical rates; and
·All resulting exchange differences are recognized in Reserves.
On consolidation, exchange differences arising from the translation of the net investment in foreign entities are taken to the foreign exchange reserve, included in Reserves.When a foreign operation is sold, such exchange differences are recognized in the statement of loss as part of the gain or loss on sale.
e)Exploration and evaluation assets and expenditures
Exploration and evaluation expenditures include the costs of acquiring licenses, costs associated with exploration and evaluation activity, and the fair value (at acquisition date) of exploration and evaluation assets acquired in a business combination.Exploration and evaluation expenditures are expensed as incurred except for expenditures associated with the acquisition of exploration and evaluation assets through a business combination or asset acquisition which are recognized as assets.Costs incurred before the Company has obtained the legal rights to explore an area are recognized in the consolidated statement of comprehensive loss.
Capitalized costs, including general and administrative costs, are only allocated to the extent that these costs can be related directly to operational activities in the relevant area of interest where they are considered likely to be recoverable by future exploitation or sale or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves.
Exploration and evaluation assets are assessed for impairment if (i) sufficient data exists to determine technical feasibility and commercial viability, and (ii) facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area are first tested for impairment and then reclassified to mining property and development assets within property, plant and equipment.
Recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.
91
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
3.MATERIAL ACCOUNTING POLICY INFORMATION (Continued)
f)Share capital
Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity. Common shares issued for consideration other than cash are valued based on their market value at the date the shares are issued. If the Company issues units as part of financing, consisting of both common shares and common share purchase warrants, the fair value of the warrants is determined using the Black-Scholes pricing model, and fair value of the common shares is determined using market price. The allocation of value is proportionally based on their fair value.
g)Share-based payment transactions
The share option plan allows the Company’s employees and consultants to acquire shares of the Company.The fair value of options granted is recognized as a share-based payment expense with a corresponding increase in equity.An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee.
The fair value is measured at grant date and each tranche is recognized on a graded-vesting basis over the period during which the options vest.The fair value of the options granted is measured using the Black-Scholes option pricing model taking into account the terms and conditions upon which the options were granted.At each statement of financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of share options that are expected to vest.
h)Warrants
Warrants with the right to acquire common shares in the Company are typically issued through the Company’s equity financing activities. Where finders’ warrants are issued on a stand-alone basis, their fair values are measured on their issuance date using the Black-Scholes option pricing model and are recorded as both an increase to reserves and as a share issue cost.
When warrants are exercised, the cash proceeds along with the amount previously recorded in equity reserves are recorded as share capital.
i)Earnings (Loss) per share
The Company presents the basic and diluted earnings (loss) per share data for its common shares, calculated by dividing the income (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period.Diluted earnings (loss) per share is determined by adjusting the income (loss) attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares. In the Company’s case, diluted earnings (loss) per share is the same as basic earnings (loss) per share as the effects of including all outstanding options and warrants would be anti-dilutive.
92
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
3.MATERIAL ACCOUNTING POLICY INFORMATION (Continued)
j)Significant accounting judgments and estimates
The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These consolidated financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout these consolidated financial statements, and may require accounting adjustments based on future occurrences.Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and further periods if the revision affects both current and future periods.
Significant assumptions about the future and other sources of estimation uncertainty that management has made at the consolidated statement of financial position date, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:
Significant judgments
·The analysis of the functional currency for each entity of the Company. In concluding that the Canadian dollar is the functional currency of the parent, management considered both the funds from financing activities and the currency in which goods and services are paid. The functional currency of its wholly-owned subsidiaries in Europe is the Euro as management considered the currencies which mainly influence the cost of providing goods and services in those subsidiaries. The Company chooses to report in Canadian dollar as the presentation currency;
·The assessment of indications of impairment of each mineral property and related determination of the net realized value and write-down of those properties where applicable;
·The determination that the Company will continue as a going concern for the next year; and
·The accounting for investments in other companies can vary depending on the degree of control and influence over those other companies. Management is required to assess at each reporting date the Company’s control and influence over these other companies. Management has used its judgment to determine which companies are controlled and require consolidation and those which are significantly influenced and require equity accounting.
·The Company’s interest in AFOy is less than 50%, therefore it does not have the current ability to control the key operating activities of the company. However, pursuant to the Share Purchase Agreement entered into by the companies, the board of directors of AFOy is comprised of one director appointed by the Company and one director by AEBv.Despite the operator being AEBv, the Company provides the necessary funding as part of the earn-in and therefore can influence AFOy’s annual budgets and exploration programs. Management has determined that the Company has significant influence over AFOy and accordingly, the investment in AFOy is accounted for as an investment in associate (Note 7).
·The Company’s interest in AVU Kosova LLC is less than 50%, therefore it does not have the current ability to control the key operating activities of the company. Management has determined that the Company has significant influence over AVU Kosova LLC and accordingly, the investment in AVU Kosova LLC is accounted for as an investment in associate (Note 7).
93
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
3.MATERIAL ACCOUNTING POLICY INFORMATION (Continued)
j)Significant accounting judgments and estimates (Continued)
Significant estimates
The estimate that 50% of the tax deposits will be recovered within one to two years.
k)Provisions
Provisions are recognized in the consolidated statement of financial position when the Company has a legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefit will be required to settle the obligation.If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
l)Financial instruments
The following financial assets are classified as measured at amortized cost - cash, due from optionee, advance to related party, and certain other receivables.
The following financial liabilities are classified as measured at amortized cost – accounts payable and accrued liabilities and due to related parties.
The classification of financial assets is based on how an entity manages its financial instruments and the contractual cash flow characteristics of the financial asset. Transaction costs with respect to financial instruments classified as fair value through profit or loss are recognized as an adjustment to the cost of the underlying instruments.
The Company’s financial assets are classified into one of the following two measurement categories:
Financial assets held within a business model for the purpose of collecting contractual cash flows (“held to collect”) that represent solely payments of principal and interest (“SPPI”) are measured at amortized cost. Financial assets held within a business model where assets are both held for the purpose of collecting contractual cash flows or sold prior to maturity and the contractual cash flows represent solely payments of principal and interest are measured at FVPL.
m)Impairment of non-financial assets
The carrying amount of the Company’s long-lived assets (which include exploration and evaluation assets) is reviewed for impairment if there is any indication that the carrying amount may not be recoverable. If any such indication is present, the recoverable amount of the asset is estimated in order to determine whether impairment exists. An asset’s recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value, using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.
94
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
3.MATERIAL ACCOUNTING POLICY INFORMATION (Continued)
m)Impairment of non-financial assets (Continued)
If the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount, the carrying amount is reduced to the recoverable amount. Impairment is recognized immediately as a charge in the statement of comprehensive loss. Where an impairment subsequently reverses, the carrying amount is increased to the revised estimate of recoverable amount but only to the extent that this does not exceed the carrying value that would have been determined if no impairment had previously been recognized. A reversal is recognized as a recovery in the statement of comprehensive loss for the period.
n)Income taxes
Income tax on the profit or loss for the periods presented comprises current and deferred tax.Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.
Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous years.
Deferred tax is recorded using the statement of financial position liability method, providing for temporary differences, between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.The following temporary differences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that affect neither accounting or taxable loss; nor differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted that are expected to apply when temporary differences are expected to settle.
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.To the extent that the Company does not consider it probable that a future tax asset will be recovered, it provides a valuation allowance against that excess.
Additional income taxes that arise from the distribution of dividends are recognized at the same time as the liability to pay the related dividend.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
95
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
3.MATERIAL ACCOUNTING POLICY INFORMATION (Continued)
o)New accounting standards and interpretations
The following new standards and amendments to standards have been issued but are not effective for the year ended December 31, 2025:
·Presentation and Disclosure in Financial Statements
IFRS 18 was issued in April 2024 and applies to an annual reporting period beginning on or after January 1, 2027. IFRS 18 will replace IAS 1. IFRS requires all companies using IFRS Standards to provide relevant information that faithfully represents an entity’s assets, liabilities, equity, income and expenses. The Company is currently assessing the impact of this new accounting standard on its financial statements.
4.EQUIPMENT
|
| Furniture and other equipment | Vehicles | Other assets | Total |
Cost |
|
|
|
|
|
As at January 1, 2024 |
| $ | $ | $ | $ |
Additions during the year |
| ||||
Exchange adjustment |
| ||||
As at December 31, 2024 |
| ||||
Additions on acquisition of PorMining |
| ||||
Exchange adjustment |
| ||||
As at December 31, 2025 |
| $ | $ | $ | $ |
|
|
|
|
|
|
Accumulated depreciation |
|
|
|
|
|
As at January 1, 2024 |
| $ | $ | $ | $ |
Depreciation for the year |
| ||||
Exchange adjustment |
| ||||
As at December 31, 2024 |
| ||||
Depreciation for the year |
| ||||
Exchange adjustment |
| ||||
As at December 31, 2025 |
| $ | $ | $ | $ |
|
|
|
|
|
|
Net book value |
|
|
|
|
|
As at January 1, 2024 |
| $ | $ | $ | $ |
As at December 31, 2024 |
| $ | $ | $ | $ |
As at December 31, 2025 |
| $ | $ | $ | $ |
96
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
5. EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES
|
| Portugal |
| Kosovo | Others |
|
| |||
| Alvalade | Others |
| Slivova | Others |
|
|
| Total | |
Exploration and evaluation assets |
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
|
|
|
|
|
|
|
|
As of January 1, 2025 |
| $ | $ |
| $ | $ |
| $ |
| $ |
As of December 31, 2025 |
| $ | $ |
| $ | $ |
| $ |
| $ |
|
|
|
|
|
|
|
|
|
|
|
Mineral exploration expenses for the year ended December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
| $ 2,901 | $ - |
| $ - | $ - |
| $ - |
| $ 2,901 |
Geological salaries and consulting |
| |
| |
| |
| |||
Insurance |
| 3,261 | - |
| - | - |
| - |
| 3,261 |
Office and administrative fees |
|
|
|
|
|
|
| |||
Rent |
|
|
|
| ||||||
Site costs |
|
|
|
| ||||||
Travel |
|
|
|
| ||||||
Reimbursements from optionees |
| ( |
|
|
| ( | ||||
| $ | $ |
| $ | $ |
| $ |
| $ | |
Cumulative mineral exploration expenses since acquisition |
|
|
|
|
|
|
|
|
|
|
Assaying |
| $ | $ |
| $ | $ |
| $ |
| $ |
Concession fees and taxes |
|
|
|
| ||||||
Depreciation |
|
|
|
| ||||||
Drilling |
|
|
|
| ||||||
Geological salaries and consulting |
|
|
|
| ||||||
Geology work |
|
|
|
| ||||||
Insurance |
|
|
|
| ||||||
Legal and accounting |
|
|
|
| ||||||
Office and administrative fees |
|
|
|
| ||||||
Rent |
|
|
|
| ||||||
Report |
|
|
|
| ||||||
Site costs |
|
|
|
| ||||||
Travel |
|
|
|
| ||||||
Trenching and road work |
|
|
|
| ||||||
Reimbursements from optionees |
| ( | ( |
| ( | ( |
|
| ( | |
| $ ( | $ |
| $ | $ |
| $ |
| $ | |
97
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
5. EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)
|
| Portugal |
| Kosovo | Others |
|
| |||
| Alvalade | Others |
| Slivova | Others |
|
|
| Total | |
Exploration and evaluation assets |
|
|
|
|
|
|
|
|
|
|
Acquisition costs |
|
|
|
|
|
|
|
|
|
|
As of January 1, 2024 |
| $ | $ |
| $ | $ |
| $ |
| $ |
As of December 31, 2024 |
| $ | $ |
| $ | $ |
| $ |
| $ |
|
|
|
|
|
|
|
|
|
|
|
Mineral exploration expenses for the year ended December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
Concession fees and taxes |
| $ | $ |
| $ | $ |
| $ |
| $ |
Geological salaries and consulting |
| |
| |
| |
| |||
Insurance |
| 506 | - |
| - | - |
| - |
| 506 |
Rent |
|
|
|
| ||||||
Site costs |
|
|
|
| ||||||
Travel |
|
|
|
| ||||||
Reimbursements from optionees |
| ( |
| ( |
|
| ( | |||
| $ ( | $ |
| $ ( | $ |
| $ |
| $ ( | |
Cumulative mineral exploration expenses since acquisition |
|
|
|
|
|
|
|
|
|
|
Assaying |
| $ | $ |
| $ | $ |
| $ |
| $ |
Concession fees and taxes |
|
|
|
| ||||||
Depreciation |
|
|
|
| ||||||
Drilling |
|
|
|
| ||||||
Geological salaries and consulting |
|
|
|
| ||||||
Geology work |
|
|
|
| ||||||
Insurance |
|
|
|
| ||||||
Legal and accounting |
|
|
|
| ||||||
Office and administrative fees |
|
|
|
| ||||||
Rent |
|
|
|
| ||||||
Report |
|
|
|
| ||||||
Site costs |
|
|
|
| ||||||
Travel |
|
|
|
| ||||||
Trenching and road work |
|
|
|
| ||||||
Reimbursements from optionees |
| ( | ( |
| ( | ( |
|
| ( | |
| $ ( | $ |
| $ | $ |
| $ |
| $ | |
98
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)
Portugal
Licenses have varying required work commitments and carry a 3% Net Smelter Return (“NSR”) payable to the government of Portugal.
Alvalade:
On November 19, 2019, the Company and MAEPA (collectively the “Company”) and Minas de Aguas Teñidas, S.A. (“Sandfire MATSA” or “MATSA”) and its wholly-owned subsidiary Sandfire Mineira Portugal,Unipessoal Lda. (“SMP”), formerly “EUL”, collectively “Sandfire MATSA” entered into an Earn-In Joint Venture Agreement (the “Agreement”) with respect to the Alvalade Project. Pursuant to the Agreement, PorMining, Unipessoal Lda. (“PorMining”) was incorporated on December 17, 2019 to hold assets and develop mineral rights (both as defined) and SMP can earn up to an 85% interest in PorMining. The earning of this interest, subsequent arrangements that may be entered into to explore the assets and, if warranted, the development of one or more projects are referred to as the “Transaction”.
On March 27, 2020, MAEPA and SMP entered into a Quota Transfer Agreement pursuant to which MAEPA split its 100% interest in the share capital of PorMining into two quotas, representing 51% and 49% of the company’s share capital, and sold the 51% quota to SMP for the nominal value of €510.
On March 27, 2020, the Company, MAEPA, Sandfire MATSA and SMP entered into the PorMining Lda. Shareholders’ Agreement (the “Agreement”). Pursuant to the Agreement:
·PorMining has five directors. From the effective date until the second option exercise date, three will be nominated by SMP and two by MAEPA. Thereafter, four will be nominated by SMP and one will be nominated by MAEPA. Upon the occurrence of the 51/49 Phase and thereafter, SMP is entitled to nominate three directors and MAEPA two directors. In the event of dilution of the interest of SMP or MAEPA, each will be entitled to proportional representation (as described) equal to its then interest;
·In the event that SMP and/or MAEPA wish to sell or transfer their shares in PorMining, PorMining has a right of first refusal to purchase all or a portion of the shares. To the extent that PorMining does not exercise its right of first refusal to all the shares, each of SMP and/or MAEPA has a right of first refusal; and
·The Agreement will terminate at such time as there is a final decision regarding the dissolution and liquidation of PorMining, the parties mutually agree on the termination of the Agreement or as provided for under the Earn-In Joint Venture Agreement.
The effective date of the Transaction was June 15, 2020, the date that PorMining received the mineral rights in its name from the General Directorate of Energy and Geology of Portugal (“DGEG”). The Transaction comprised of few phases whereas SMP completed Phase I – First Option and was working on Phase II – Second Option before SMP terminated the Agreement in February 2025.
99
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)
Alvalade: (Continued)
During Phase I, MAEPA granted SMP the sole and exclusive right to hold an undivided 51% interest in PorMining (the first option) for at least three years from June 15, 2020 of the Experimental Exploitation License (the “EEL”) by DGEG to PorMining. SMP’s right to maintain its 51% interest was conditional upon Sandfire MATSA:
·Paying €400,000 to the Company on or before the effective date (€200,000 was received in December 2019 and the remaining €200,000 was received in June 2020);
·Funding or providing the necessary financial instrument to cover the guarantee, which will be returned to Sandfire MATSA following the release of the guarantee by DGEG (funded €100,000 in June 2020); and
·Funding expenditures (the first option expenditures) on the mineral rights in an aggregate amount of €2,400,000 (€1,200,000 within the first 12 months following the effective date [met] and €1,200,000 in the next 24 months [met]) on or before three years from the effective date or the issue of the EEL.
Effectively in March 2022, Sandfire MATSA completed the Phase I First Option by funding a total of €2,500,000 on the Alvalade project, including the €100,000 guarantee with DGEG, and SMP unconditionally earned the 51% interest in PorMining.
During Phase I, MAEPA acted as the operator of the mineral rights with PorMining paying MAEPA an operator’s fee equal to €100,000 per year, paid monthly starting June 16, 2020, funded by Sandfire MATSA and which formed part of the first option expenditures.
Upon the completion of Phase I, Sandfire MATSA and PorMining continued with having MAEPA acting as the operator and PorMining continued paying the operator’s fee until December 31, 2024. In January 2025, SMP notified the Company that it intended to transfer its interests in the project back to the Company. During the year ended December 31, 2025, MAEPA received the final operator’s fee of €8,333 ($13,151) (2024 - €100,000 ($148,180)) where the fund was included in reimbursements from optionee.
Prior to SMP terminating the Agreement in February 2025, as of December 31, 2024, Sandfire MATSA funded €5,221,000 towards Phase II – Second Option, but it did not complete this Phase II – Second Option earn-in and paid an additional amount of €159,900 to cover the final planned and wrap up costs for the Alvalade Project.
On February 27, 2025, SMP and the Company signed the termination agreement and for a nominal fee of €510, the Alvalade project and the portion of the share capital of the joint venture entity PorMining held by SMP (51%) was transferred to MAEPA, resulting in the Company owning 100% of PorMining and began consolidating PorMining effective April 1, 2025. As a result of this transfer, the Company recognized a gain of $399,712 in the statement of comprehensive loss.
Upon DGEG releaing the guarantee of $160,890 (€100,000) that Sandfire MATSA put in as part of the Phase I – First Option obligation, this amount will be returned to Sandfire MATSA. As a result, the Company recorded such amount in both the non-current asset (Property deposit) and non-current liability (Due to Sandfire MATSA). See also Note 6(a).
100
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)
Alvalade: (Continued)
| December 31, 2025 |
| December 31, 2024 | |
|
|
|
|
|
Due from optionee |
|
|
| |
| Alvalade - PorMining | $ |
| $ |
| $ |
| $ | |
Kosovo
Slivova (formerly Slivovo) license:
Byrnecut International Limited (“Byrnecut”) earned an 85% interest in the Slivovo property after forwarding $2,834,986 (€2,000,000) for the Slivovo property to the Company and completing a Preliminary Feasibility Study (“PFS”) by April 10, 2017. Byrnecut and the Company set up a joint venture entity known as Peshter Mining J.S.C. (“Peshter Mining”) to reflect the 85:15 ownership and transferred the Slivovo license into Peshter Mining with Byrnecut being the operator. Avrupa’s interest in Peshter Mining was subsequently diluted to below 10%, resulting in the Company’s interest in Peshter Mining being converted into a 2% Net Smelter Return.
On December 31, 2019, the Company wrote down its interest in Slivovo by $
In March 2021, the Company incorporated a wholly-owned subsidiary, AVU Kosova LLC, to apply for a new Slivovo exploration permit. In May 2022, the Company received a seven-year exploration permit known as the Slivova license.
As consideration for Byrnecut ensuring that Peshter Mining complies with its obligations under the TS, IEK must pay to Byrnecut milestone cash payments totaling €375,000 and milestone gold payments totaling 850 troy ounces of gold (together known as “Success Payments”) as follows:
Cash
·€125,000 within 30 days of the first to occur of the completion of a positive bankable feasibility study or the board of directors of IEK making a decision to proceed with the development of a commercial mining operation in respect of all or any part of the tenement area;
·€125,000 within 30 days of issue of a mining license in respect of all or any party of the tenement area; and
·€125,000 within 30 days of commencement of construction of a mine within the tenement area.
101
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)
Kosovo (Continued)
Slivova (formerly Slivovo) license: (Continued)
Gold
·100 troy ounces within 30 days of commencement of commercial production (“CCP”);
·175 troy ounces within 30 days of the one-year anniversary of CCP;
·250 troy ounces within 30 days of the two-year anniversary of CCP; and
·325 troy ounces within 30 days of the three-year anniversary of CCP.
On August 24, 2022, and subsequently confirmed via a Definitive Agreement (the “Agreement”) on May 2, 2023, the Company and Western Tethyan Resources (“WTR”) entered into an agreement in respect of the Slivova project. WTR is a private exploration company and is 75% owned by London AIM-listed Ariana Resources PLC. Pursuant to the Agreement, WTR can earn up to an 85% interest in the Slivova project.
The terms of the Agreement are as follows:
Date/Period | Expenditures | Option Payment | Earn-in % |
On September 1, 2022 (Effective Date) | None | €35,000 (received) |
|
On or before March 1, 2023 | €100,000 (spent) | None |
|
On March 1, 2023 | None | €35,000 (received) |
|
On or before September 1, 2023 | €150,000 (spent) | €30,000 (received) |
|
On or before September 1, 2024 * | €650,000 (spent) | None | 51% (Stage 1) |
On or before September 1, 2025 ** | €1,000,000 | None | 75% (Stage 2) |
*In June 2024, the Agreement was amended and the completion date for the expenditure of €650,000 was extended from September 1, 2024 to December 31, 2024.
**The Company and WTR are working with the Kosovo government to renew the Slivova license and once the Kosovo government has approved such, the two parties will amend the earn-in date for Stage 2 of the Agreement.
During Stage 1, the expenditures will be in respect of payments for exploration, drilling, baseline environmental and social surveys, and other payments to landowners. As of December 31, 2024, WTR completed the Stage 1 by funding a total of €819,014 on the Slivova project and unconditionally earned the 51% interest in AVU Kosova LLC.On January 31, 2025, 51% interest was transferred to WTR, leaving the Company recognizing $1 as its 49% interest in AVU Kosova LLC as “Investment in AVU Kosova LLC” (See Note 7).
During Stage 2, the expenditures will be in respect of payments for a NI 43-101 resource estimation, commencement of full Environmental Impact Statement (“EIS”), and other exploration expenses.
During fourth and fifth year from the Effective Date (Stage 3), WTR must complete the EIS, Feasibility Study (“FS”), and Mining License application to earn-in 85% interest in the project.
During Stage 4, WTR will complete the Success Payments to the previous JV partner, Byrnecut (see “TS” above).
During Stage 5, the Company will participate in the mine build or dilute to 1% Net Smelter Return (“NSR”).
102
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
6. TAX DEPOSITS
(a)Property deposit:
As of December 31, 2025, the Company had a total of $160,890 (€100,000) (December 31, 2024: $Nil (€Nil)) of cash pledged for its Alvalade exploration license in Portugal. This advance to the Portuguese regulatory authorities is refundable to the Company, subject to completion of the work obligations described in the exploration license application.
(b)Tax deposits:
In November 2018, MAEPA paid €56,505 ($88,201) in lieu of bank guarantees of €77,918 ($121,625) to the Directora de Finanças de Braga in Portugal. This amount was comprised of €51,920 ($81,044) in respect of stamp tax and €4,585 ($7,157) in respect of VAT. The stamp tax portion relates to the interpretation that intercompany advances received by MAEPA are financing loans and, accordingly, are subject to stamp tax. The VAT portion relates to certain invoices for vehicle usage and construction services. As of December 31, 2019, the Company estimated that the judicial review process would take approximately one year for the VAT claim and three to five years for the stamp tax claim and that the likelihood of success for each was 50%. As a result, tax deposits were written down by $41,200 (€28,252) during the year ended December 31, 2019. During 2020, the judicial review ruled that approximately €1,971 VAT remained to be paid while the rest were annulled.The Company accepted this ruling.On April 8, 2026, the trial regarding the stamp tax was held and the Company filed the written material on April 28, 2026.
7. ADVANCE, DEPOSIT AND INVESTMENT IN AKKERMAN FINLAND OY
(a)On February 25, 2022, the Company signed a Share Purchase Agreement with Akkerman Exploration B.V. (“AEbv”) to acquire up to a 100% ownership interest in Akkerman Finland OY (“AFOy”), an entity holding certain mineral rights (the “Property”) in Finland.
The acquisition terms are as follows:
·The Company can earn an initial 49% interest in AFOy in Stage One by issuing 1,470,000 common shares (issued at a value of $95,550), paying €150,000 ($211,800) into AFOy for the purpose of paying existing shareholder loans (paid), and depositing €200,000 ($282,400) into a dedicated account (paid), to be spent on exploration expenditures during the period between the completion of Stage One and the completion of Stage Two.The €200,000 ($282,400) was recorded as an advance to AFOy as of December 31, 2023.As of December 31, 2025, the Company advanced a total of $491,938 to AFOy (December 31, 2024 - $491,938).
·As a Stage Two earn-in, the Company had the option, for a period of 12 months from the date of completion of Stage One, to acquire the remaining 51% interest in AFOy, bringing their total interest to 100%. The option to acquire the additional 51% interest expired on March 3, 2023.
The Company and AEbv formed a technical committee comprising of one representative from each party, with AEbv’s representative having the casting vote.
As at December 31, 2025, the Company holds a 49% interest in AFOy (December 31, 2024 – 49%). The investment in associate was assessed for impairment indicators relating to the underlying assets of AFOy in accordance with IAS 36 and IFRS 6.
103
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
7. ADVANCE, DEPOSIT AND INVESTMENT IN AKKERMAN FINLAND OY (Continued)
The year ended December 31, 2025 and 2024 calculation for the Investment in AFOy is as follows:
Investment in AFOy as at December 31, 2023 |
| $ | 230,963 |
Loss on investment in AFOy |
|
| (40,257) |
Investment in AFOy as at December 31, 2024 |
| $ | 190,706 |
Loss on investment in AFOy |
|
| (68,531) |
Investment in AFOy as at December 31, 2025 |
| $ | 122,175 |
The Company’s share of AFOy’s loss for the years ended December 31, 2025 and 2024 has been calculated as follows:
|
| 2025 |
| 2024 |
AFOy’s net loss | $ | 139,860 | $ | 82,157 |
The Company’s ownership % |
| 49% |
| 49% |
Share of loss of an associate | $ | 68,531 | $ | 40,257 |
The following table illustrates the summarized financial information of AFOy:
December 31, 2025 | December 31, 2024 | ||||
Current assets | $ | $ | |||
Non-current assets |
|
| |||
Current liabilities |
|
| |||
Non-current liabilities |
|
| |||
Loss for the year |
|
| |||
(a)During fiscal 2025, the Company transferred 51% ownership of AVU Kosova LLC to WTR as WTR completed earning in Stage 1 (Note 5).As a result of this transfer of 51% ownership, the Company recognized $
The year ended December 31, 2025 calculation for the Investment in AVU Kosova LLC is as follows:
Investment in AVU Kosova LLC as at February 7, 2025 | $ | 6,968 |
Loss on derecognization of a former subsidiary |
| (6,967) |
Investment in AVU Kosova LLC as at December 31, 2025 | $ | 1 |
The following table illustrates the summarized financial information of AVU Kosova LLC:
December 31, 2025 | |
Current assets | $ |
Non-current assets | |
Current liabilities | |
Loss for the year |
104
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
8. CAPITAL AND RESERVES
(a)Authorized:
At December 31, 2025, the authorized share capital was comprised of an unlimited number of common shares.The common shares do not have a par value.All issued shares are fully paid.
(b)Share issuances:
i.On
iiOn
(c)Share Purchase Option Compensation Plan:
The Company has established a stock option plan whereby the Company may grant options to directors, officers, employees and consultants of up to 10% of the common shares outstanding at the time of grant. The exercise price, term and vesting period of each option are determined by the board of directors within regulatory guidelines.
Stock option transactions and the number of stock options for the year ended December 31, 2025 are summarized as follows:
|
| Exercise | December 31, |
|
|
| Expired/ | December 31, |
Expiry date | price | 2024 | Granted |
| Exercised | cancelled | 2025 | |
$ |
| |||||||
Options outstanding |
|
| ||||||
Options exercisable |
|
| ||||||
Weighted average exercise price |
| $ | $ |
| $ | $ | $ |
As of December 31, 2025, the weighted average contractual remaining life is 1.20 years (December 31, 2024 – 2.20 years).
Stock option transactions and the number of stock options for the year ended December 31, 2024 are summarized as follows:
|
| Exercise | December 31, |
|
|
| Expired/ | December 31, |
Expiry date | price | 2023 | Granted |
| Exercised | cancelled | 2024 | |
$ |
| ( | ||||||
$ |
| |||||||
Options outstanding |
|
| ( | |||||
Options exercisable |
|
| ( | |||||
Weighted average exercise price |
| $ | $ |
| $ | $ | $ |
105
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
8. CAPITAL AND RESERVES (Continued)
(c)Share Purchase Option Compensation Plan: (Continued)
Stock option transactions and the number of stock options for the year ended December 31, 2023 are summarized as follows:
|
| Exercise | December 31, |
|
|
| Expired/ | December 31, |
Expiry date | price | 2022 | Granted |
| Exercised | cancelled | 2023 | |
$ |
| ( | ||||||
$ |
| ( | ||||||
$ |
| |||||||
$ |
| |||||||
Options outstanding |
|
| ( | |||||
Options exercisable |
|
| ( | |||||
Weighted average exercise price |
| $ | $ |
| $ | $ | $ |
(d)Finder’s Options:
The continuity of finder’s options for the year ended December 31, 2023 is as follows:
|
| Exercise | December 31, |
|
|
|
| December 31, |
Expiry date | price | 2022 | Issued |
| Exercised | Expired | 2023 | |
$ |
| ( | ||||||
Outstanding |
|
| ( | |||||
Weighted average exercise price |
| $ | $ |
| $ | $ | $ |
(e)Warrants:
The continuity of warrants for the year ended December 31, 2025 is as follows:
|
| Exercise | December 31, |
|
|
| December 31, |
Expiry date | price | 2024 | Issued | Exercised | Expired | 2025 | |
$ | ( | ||||||
$ | |||||||
$ | |||||||
Outstanding |
| ( | |||||
Weighted average exercise price |
| $ | $ | $ | $ | $ |
As of December 31, 2025, the weighted average contractual life is 2.38 years (December 31, 2024 – 1.11 years).
The continuity of warrants for the year ended December 31, 2024 is as follows:
|
| Exercise | December 31, |
|
|
| December 31, |
Expiry date | price | 2023 | Issued | Exercised | Expired | 2024 | |
$ | |||||||
$ | |||||||
Outstanding |
| ||||||
Weighted average exercise price |
| $ | $ | $ | $ | $ |
106
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
8. CAPITAL AND RESERVES (Continued)
(e)Warrants: (Continued)
The continuity of warrants for the year ended December 31, 2023 is as follows:
|
| Exercise | December 31, |
|
|
| December 31, |
Expiry date | price | 2022 | Issued | Exercised | Expired | 2023 | |
$ | ( | ||||||
$ | |||||||
Outstanding |
| ( | |||||
Weighted average exercise price |
| $ | $ | $ | $ | $ |
The weighted average assumptions used to estimate the fair value of warrants for the years ended December 31, 2025, 2024 and 2023 were:
2025 | 2024 | 2023 | |
Risk-free interest rate | n/a | ||
Expected life | n/a | ||
Expected volatility | n/a | ||
Expected dividend yield | n/a |
9. RELATED PARTY TRANSACTIONS AND BALANCES
The aggregate value of transactions and outstanding balances relating to key management personnel and entities over which they have control or significant influence were as follows:
| For the year ended December 31, 2025 | ||||||
| Short-term employee benefits | Post-employment benefits | Other long-term benefits | Termination benefits | Other expenses | Share-based payments | Total |
Paul W. Kuhn (b) | $ | $ | $ | $ | $ | $ | $ |
| For the year ended December 31, 2024 | ||||||
| Short-term employee benefits | Post-employment benefits | Other long-term benefits | Termination benefits | Other expenses | Share-based payments | Total |
Paul W. Kuhn (b) | $ | $ | $ | $ | $ | $ | $ |
| For the year ended December 31, 2023 | ||||||
| Short-term employee benefits | Post-employment benefits | Other long-term benefits | Termination benefits | Other expenses | Share-based payments | Total |
Paul W. Kuhn (b) | $ | $ | $ | $ | $ | $ | $ |
107
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
9. RELATED PARTY TRANSACTIONS AND BALANCES (continued)
Related party liabilities
|
| Years ended |
|
| |||||||
| Services / Advances | December 31, 2025 | December 31, 2024 | December 31, 2023 | As at December 31, | As at December 31, | |||||
Amounts due to: |
|
|
|
|
|
| |||||
Pacific Opportunity Capital Ltd. (a) | $ | 115,400 | $ | $ | 111,700 | $ | $ | 74,864 | |||
Paul W. Kuhn (b) | $ | 150,000 | $ | $ | 150,000 | $ | $ | Nil | |||
Mark T. Brown (d) | $ | Nil | $ | $ | Nil | $ | $ | 380 | |||
TOTAL: |
| $ | 265,400 | $ | $ | 261,700 | $ | $ | 75,244 | ||
|
|
|
|
|
|
|
| Amounts due from: | |||
Paul W. Kuhn (b) | $ | Nil | $ | $ | Nil | $ | $ | 154,292 (c) | |||
(a)
·The contract remains effective until terminated in writing by either the Company or the contractor. The Company may terminate the contract at any time without notice or payment in lieu thereof for cause or at any time without cause by providing six months’ written notice or by paying the contractor in lieu of notice. The contractor may terminate the contract at any time by providing the Company with three months’ written notice.
(c)This amount relates to PorMining paying Paul Kuhn for his technical services consulting in excess of the Contract (defined above in Note 9(b)). Such amount will be used to offset and reduce the Company's monthly fee payable to Paul Kuhn per the Contract.
(d)
All related party transactions are in the normal course of operations and have been measured at the exchange amount, which is the amount of the consideration established and agreed to by the related parties. The amounts due to related parties are unsecured, non-interest bearing and payable on demand.
10. LOSS PER SHARE
Basic and diluted loss per share
The calculation of basic and diluted loss per share for the year ended December 31, 2025 was based on the loss attributable to common shareholders of $
Diluted loss per share did not include the effect of
108
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
11. FINANCIAL INSTRUMENTS
The fair values of the Company’s cash, other receivables, advance to related party, due from optionee, accounts payables and accrued liabilities and due to related parties approximate their carrying values because of the short-term nature of these instruments.
The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, interest risk, equity market price risk and currency risk.
(a)Credit risk
Credit risk exposure primarily arises with respect to the company’s cash, amounts receivable from an optionee and a related party. The risk exposure is limited because the Company places its instruments in banks of high credit worthiness in Canada, Portugal and Kosovo and continuously monitors the collection of other receivables.
(b)Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure.
As at December 31, 2025, the Company had cash of $
Accounts payable and accrued liabilities are due within the current operating period.
(c)Interest rate risk
Interest rate risk is not material as the Company does not have any significant financial assets or liabilities subject to fluctuation in interest rates.
(d)Equity market price risk
The Company is exposed to price risk with respect to equity market prices. Price risk as it relates to the Company is defined as the potential adverse impact on the Company’s ability to finance due to movements in individual equity prices or general movements in the level of the stock market. The Company closely monitors individual equity movements and the stock market to determine the appropriate course of action to be taken by the Company.
(e)Currency risk
The Company’s property interests in Portugal, Finland and Kosovo make it subject to foreign currency fluctuations and inflationary pressures which may adversely affect the Company’s financial position, results of operations and cash flows. The Company is affected by changes in exchange rates between the Canadian Dollar and foreign functional currencies. The Company does not invest in foreign currency contracts to mitigate the risks. The Company has net monetary assets of $13,700 dominated in Euros. A 1% change in the absolute rate of exchange in US dollars and Euros would affect its net loss by $5,100.
109
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
11. FINANCIAL INSTRUMENTS (Continued)
IFRS 7 establishes a fair value hierarchy that prioritizes the input to valuation techniques used to measure fair value as follows:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – inputs other than 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); and
Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
12. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS
The non-cash transactions during the years ended December 31, 2025, 2024 and 2023 were as follows:
·As at December 31, 2025, a total of $
13. MANAGEMENT OF CAPITAL RISK
The Company manages its cash, common shares, warrants and share purchase options as capital (see Note 8).The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk.
The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets.To maintain or adjust the capital structure, the Company may attempt to issue new shares, acquire or dispose of assets or adjust the amount of cash and cash equivalents held.
In order to maximize ongoing operating efforts, the Company does not pay out dividends.The Company’s investment policy is to invest its short-term excess cash in highly liquid short-term interest-bearing investments with maturities of 90 days or less from the original date of acquisition, selected with regards to the expected timing of expenditures from continuing operations.
The Company expects its current capital resources will be sufficient to carry out its exploration or operations in the near term.
110
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
14. INCOME TAX
A reconciliation of income taxes at statutory rates is as follows:
|
| 2025 |
| 2024 | 2023 |
|
| ||||
Net loss |
| $ ( |
| $ ( | $ ( |
|
|
|
|
|
|
Expected income tax recovery |
| $ ( |
| $ ( | $ ( |
Effect of foreign tax rate |
|
| ( | ( | |
Deductible and non-deductible items |
| ( |
| ( | |
Deferred tax assets on acquisition of PorMining |
| ( |
| ||
True up of prior year amounts |
| ( |
| ( | ( |
Unrecognized benefit of deferred tax assets |
|
| |||
|
|
|
|
|
|
| $ |
| $ | $ |
The significant components of the Company’s deferred income tax assets are as follows:
| 2025 |
| 2024 | |
|
|
|
|
|
Deferred income tax assets |
|
|
|
|
Non-capital loss carryforwards |
| $ |
| $ |
Allowable capital losses |
|
| ||
Share issue costs |
|
| ||
|
| |||
Valuation allowance |
| ( |
| ( |
|
|
|
|
|
Net deferred income tax assets |
| $ |
| $ |
The Company has available for deduction against future taxable income Canadian non-capital losses of approximately $9,177,000 in Canada (2024 - $8,836,000). These losses, if not utilized, will expire through to 2045.Tax benefits which may arise as a result of these non-capital losses have not been recognized in these consolidated financial statements and have been offset by a valuation allowance.
111
AVRUPA MINERALS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(Presented in Canadian Dollars)
14. INCOME TAX (Continued)
The following table shows the non-capital losses in Canada:
Year of Origin | Year of Expiry | Non-capital losses | |
|
|
|
|
$ | |||
|
| $ |
15. SEGMENTED FINANCIAL INFORMATION
The Company operates in one industry segment, being the acquisition and exploration of mineral properties. Geographic information is as follows:
December 31, 2025 | December 31, 2024 | |
Non-current assets |
|
|
Portugal | $ | $ |
Kosovo | ||
Finland | ||
Canada | ||
$ | $ | |
|
|
|
| Years ended | |
| December 31, 2025 | December 31, 2024 |
Mineral exploration expenses |
|
|
Portugal | $ | $ |
Kosovo | ||
$ | $ | |
112
Signature Page
Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant certifies that it meets all of the requirements for filing on Form 20-F and has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Avrupa Minerals Ltd.
Registrant
Dated: May 26, 2026 |
| Signed: /s/ Winnie Wong |
|
| Winnie Wong, Chief Financial Officer |
113
CERTIFICATIONS
I, Paul W. Kuhn, certify that:
1. I have reviewed this annual report on Form 20-F of Avrupa Minerals Ltd.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
4. The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;
c)Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
5. The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
b)any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
Date: May 26, 2026
/s/ “Paul W. Kuhn”
Paul W. Kuhn
President and CEO
CERTIFICATIONS
I, Winnie Wong, certify that:
1. I have reviewed this annual report on Form 20-F of Avrupa Minerals Ltd.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
4. The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;
c)Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
5. The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
b)any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
Date: May 26, 2026
/s/ “Winnie Wong”
Winnie Wong,
Chief Financial Officer
CERTIFICATIONS PURSUANT TO THE SARBANES-OXLEY ACT
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
I, Paul W. Kuhn, Chief Executive Officer of Avrupa Minerals Ltd. (the “Company”) do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
1. This Annual Report on Form 20-F of the Company for the period ended December 31, 2025, as filed with the Securities and Exchange Commission (the “report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: May 26, 2026
/s/ “Paul W. Kuhn”
Paul W. Kuhn,
President and Chief Executive Officer
CERTIFICATIONS PURSUANT TO THE SARBANES-OXLEY ACT
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
I, Winnie Wong, Chief Financial Officer of Avrupa Minerals Ltd. (the “Company”) do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
1. This Annual Report on Form 20-F of the Company for the period ended December 31, 2025, as filed with the Securities and Exchange Commission (the “report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: May 26, 2026
/s/ “Winnie Wong”
Winnie Wong,
Chief Financial Officer