Company: AUST
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001410578-25-000509
Chunk: 53

Company: Austin Gold Corp.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 5
Chunk 53
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 the current Company capital structure and updates its expenditure budgets and forecasts as necessary, to determine whether or not new financing will need to be obtained, and what type of financing is appropriate given the changing market conditions.

Management estimates its current working capital will be sufficient to fund its current level of activities for at least the next twelve months.

Despite the Company’s success to date in raising capital to fund its operations, there is significant uncertainty that the Company will be able to secure any additional financing in the current or future equity markets. Refer to the “ Risk Factors” section of this Annual Report. Failure to obtain additional financing could have a material adverse effect on our financial condition and results of operation and could cast uncertainty on our ability to continue as a going concern. The quantity of funds to be raised and the terms of any proposed equity financing that may be undertaken will be negotiated by management as opportunities to raise funds arise. Specific plans related to the use of proceeds will be devised once financing has been completed and management knows what funds will be available for these purposes.

Mineral Property Obligations

The Company is required to make pre-production, lease and/or advanced royalty payments on each of its projects to keep the agreements in good standing. In addition, for the Kelly Creek and Lone Mountain projects, the Company is required to incur E& E expenditures (i. e. work commitments) under those respective agreements. For details of these commitments refer to section “Item 4. D. Property, Plant and Equipment and E& E assets” in this Annual Report or refer to Note 10 of the Consolidated Financial Statements.

Introductory Agent Agreement

The Company executed an introductory agent agreement with BMR (the “BMR Agreement”). Under the BMR Agreement, should a mineral property recommended by BMR be acquired by the Company, the Company shall pay an introductory agent fee as follows:

  Within 15 days of acquisition                                     $5,000  
  6 months after acquisition                                        $5,000  
  12 months after acquisition                                       $5,000  
  18 months after acquisition                                       $5,000  
  24 months after acquisition                                       $7,500  
  30 months after acquisition                                       $7,500  
  36 months after acquisition                                      $10,000  
  42 months after acquisition                                      $10,000  
  48 months after acquisition and every six months thereafter      $15,000  

If commercial production is achieved on a property recommended by BMR, the Company shall pay a 0.5% net