Related Party Transactions [Text Block] |
8.
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Related Party Transactions
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(a) |
For the year ended October 31, 2012, the Company paid / accrued $96,000
to CAB (2011: $96,000), Tom Ihrke, the VP of business development, $7,908
(2011: $34,375), and BKB Management Ltd.(“BKB”) CAD$66,000
(2011: CAD$64,000) 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.
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The related party transactions are recorded at the exchange amount established and agreed to between the related parties.
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(b) |
On October 27, 2008 the Company entered a secured loan agreement in the amount of CAD$300,000
with CAB (See Note 7f). 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, 2012, the Company paid interest expenses of CAD $27,275
(2011: CAD$41,509).
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(c) |
On October 27, 2008 the Company entered a secured loan agreement in the amount of CAD$400,000
with Christopher Bunka (See Note 7f). On October 21, 2010, the Company settled a portion of the debt, namely $2,167
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, 2012, the Company paid interest expenses of CAD $71,610
(2011: CAD$71,610).
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(d) |
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 year ended October 31, 2012, the Company paid interest expenses of $13,500
(2011: $13,500).
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(e) |
On March 30, 2012, the Company entered a non-secured loan agreement in the amount of US$50,000
with Chris Bunka. For the year ended October 31, 2012, the Company incurred interest expenses of $3,500
(2011: $nil).
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(f) |
On July 20, 2012, the Company entered a non-secured loan agreement in the amount of US$50,000
with Chris Bunka. For the year ended October 31, 2012, the Company incurred interest expenses of $1,556
(2011: $nil) and paid back principal of $12,498
(2011: $nil) .
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(g) |
On December 1, 2011, the Company entered into a secured loan agreement in the amount of $200,000
with two directors of the Company (see Note 7c). For the year ended October 31, 2012, the Company paid interest expense of $22,000
(2011: $Nil).
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(h) |
Included in accounts payable, $55,011
(2011: $94,696) was payable to companies controlled by the president, key management personnel and directors of the Company.
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(i) |
For the year ended October 31, 2012, the Company has paid/accrued $67,377
(2011: $153,563) to Kelowna Resources Group formerly known as 0743608 BC Ltd.; $28,323
(2011:$64,553) to Emerald Atlantic LLC; and, $6,796
to Tom Ihrke (2011: $18,196) for their respective Non-consent Interests in Belmont Lake. Kelowna Resources Group, formerly known as 0743608 BC Ltd., is owned by the president of the Company, and Emerald Atlantic LLC is owned by a Director of the Company.
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(j) |
See Note 5, 6, and 7.
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