Quarterly report [Sections 13 or 15(d)]

Warrant Liability

v3.25.2
Warrant Liability
6 Months Ended
Jun. 30, 2025
Warrant Liability  
Warrant Liability

13.

Warrant Liability

In February 2023, the Company issued 39,100,000 warrants to purchase 19,550,000 common shares at $1.50 per whole common share for a term of three years.

Because the warrants are priced in U.S. dollars and the functional currency of Ur-Energy Inc., the parent company entity, is Canadian dollars, a derivative financial liability was created. Using Level 2 inputs of the fair value hierarchy under US GAAP, the liability created is measured and recorded at fair value, and adjusted monthly, using the Black-Scholes model as there is no active market for the warrants. Any gain or loss from the mark-to-market adjustment of the liability is reflected in net income for the period.

Activity with respect to the warrant liabilities is presented in the following table:

Feb-2023

Warrant Liability Activity

Warrants

December 31, 2024

2,529

Warrant liability revaluation gain (loss)

(156)

Effects of foreign exchange rate changes

38

June 30, 2025

2,411

The fair value of the warrant liabilities on June 30, 2025, was determined using the Black-Scholes model with the following assumptions:

Feb-2023

Warrant Liability Assumptions

Warrants

Expected forfeiture rate

—%

Expected life (years)

0.6

Expected volatility rate

72.7%

Risk free rate

2.6%

Expected dividend rate

—%

Exercise price

$ 1.50

Market price

$ 1.05