Related Party Transactions [Text Block] |
9.
|
Related Party Transactions
|
|
|
|
(a) |
For the six months ended April 30, 2012, the Company paid / accrued $48,000
to CAB (2011: $48,000), Tom Ihrke, the VP of business development, $7,848
(2011: $18,894), and BKB Management Ltd. (“BKB”) CAD$33,000
(2011: CAD$31,000) for management, consulting and accounting services. CAB is owned by the president of the Company and BKB is owned by the CFO of the Company.
|
|
|
|
|
|
The related party transactions are recorded at the exchange amount established and agreed to between the related parties.
|
|
|
|
|
(b) |
On October 27, 2008 the Company entered a secured loan agreement in the amount of CAD$300,000
with CAB. (See Note 8). On July 10, 2009 $40,000
of the debt was converted to equity. On October 21, 2010, the Company settled a portion of the debt, namely US$1,625
with CAB by converting
65,000
warrants into
32,500
common shares of the Company as per Purchase Agreement dated October 27, 2008 at a price of $0.05
per share. On June 28, 2011, the Company paid down CAD $100,000
of the debt. For the six months ended, April 30, 2012, the Company paid interest expenses of CAD $13,637
(2011: CAD$32,824).
|
|
|
|
|
(c) |
On October 27, 2008 the Company entered a secured loan agreement in the amount of CAD$400,000
with Christopher Bunka. (See Note 8). On October 21, 2010, the Company settled a portion of the debt, namely $2,166.65
with Christopher Bunka by converting
86,667
warrants into
43,333
common shares of the Company as per Purchase Agreement dated October 27, 2008 at a price of $0.05
per share. For the six months ended April 30, 2012, the Company paid interest expenses of CAD $35,805
(2011: CAD$36,750).
|
|
|
|
|
(d) |
See Note 5,
6,
7
and 8.
|
|
|
|
|
(e) |
On April 1, 2010, the Company entered a non-secured loan agreement in the amount of US$75,000
with CAB (See Note 7a). For the six months ended April 30, 2012, the Company paid interest expenses of $6,750
(2011: $6,750).
|
|
|
|
|
(f) |
On March 30, 2012, the Company entered a non-secured loan agreement in the amount of US$50,000
with Chris Bunka. For the quarter ended April 30, 2012, the Company incurred interest expenses of $500
(2011: $nil).
|
|
(g) |
Included in accounts payable, $82,588
(October 31, 2011: $94,696) was payable to companies controlled by the president, key management personnel and directors of the Company.
|
|
|
|
|
(h) |
For the six months ended April 30, 2012, the Company has paid/accrued $23,764
(2011: $63,147) to
0743608
BC Ltd., $9,989
(2011:$26,544) to Emerald Atlantic LLC, and $2,816
to Tom Ihrke (2011: $5,614) for their respective Non-consent Interests in Belmont Lake.
0743608
BC Ltd. is owned by the president of the Company and Emerald Atlantic LLC is owned by a Director of the Company.
|
|
8.
|
Related Party Transactions
|
|
|
|
|
(a) |
For the year ended October 31, 2011, the Company paid / accrued $96,000
to CAB (2010: $97,200), Tom Ihrke, the VP of business development, $34,375
(2010: $8,557), and BKB Management Ltd. (“BKB”) CAD$64,000
(2010: CAD$54,900) for management, consulting and accounting services. CAB is owned by the president of the Company and BKB is owned by the CFO of the Company.
|
|
|
The related party transactions are recorded at the exchange amount established and agreed to between the related parties. |
|
|
|
|
(b) |
On October 27, 2008 the Company entered a secured loan agreement in the amount of CAD$300,000
with CAB. (See Note 7a). On July 10, 2009 $40,000
of the debt was converted to equity. On October 21, 2010, the Company settled a portion of the debt, namely US$1,625
with CAB by converting
65,000
warrants into
32,500
common shares of the Company as per Purchase Agreement dated October 27, 2008 at a price of $0.05
per share. On June 28, 2011, the Company paid down CAD $100,000
of the debt. For the year ended, October 31, 2011, the Company accrued and paid interest expenses of CAD $41,509
(2010: CAD$51,025)
|
|
|
|
|
(c) |
On October 27, 2008 the Company entered a secured loan agreement in the amount of CAD$400,000
with Christopher Bunka. (See Note 7a). On October 21, 2010, the Company settled a portion of the debt, namely $2,166.65
with Christopher Bunka by converting
86,667
warrants into
43,333
common shares of the Company as per Purchase Agreement dated October 27, 2008 at a price of $0.05
per share. For the year ended, October 31, 2011, the Company accrued and paid interest expenses of CAD $71,610
(2010: CAD$80,874).
|
|
|
|
|
(d) |
See Note 4,
5,
6, and 7.
|
|
|
|
|
(e) |
On April 1, 2010, the Company entered a non-secured loan agreement in the amount of US$75,000
with CAB (See Note 7). For the year ended October 31, 2011, the Company accrued and paid interest expenses of $13,500
(2010: $7,875).
|
|
|
|
|
(f) |
On September 13, 2010, the Company entered a demand loan agreement in the amount of US$90,000
with CAB (See Note 8b). The Company accrued interest of $3,884
and paid interest of $3,150. On January 31, 2011, the Company paid back the loan in full.
|
|
|
|
|
(g) |
Included in accounts payable, $94,696
(October 31, 2010: $90,027) was payable to companies controlled by the president, key management personnel and directors of the Company.
|
|
|
|
|
(h) |
For the year ended October 31, 2011, the Company has paid/accrued $153,563
(2010: $Nil) to
0743608
BC Ltd., $64,553
(2010:$Nil) to Emerald Atlantic LLC, and $18,196
to Tom Ihrke (2010: $Nil) for their respective Non-consent Interests in Belmont Lake.
0743608
BC Ltd. is owned by the president of the Company and Emerald Atlantic LLC is owned by a Director of the Company.
|
|