Related Party Transactions [Text Block] |
9.
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Related Party Transactions
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(a)
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For the quarter ended July 31, 2011, the Company paid / accrued $72,000 to CAB (2010: $73,200), Tom Ihrke, the VP of business development, $28,269 (2010: $Nil), and BKB Management Ltd. (“BKB”) CAD$47,500 (2010: CAD$39,554) 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)
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On October 27, 2008 the Company made a secured loan agreement in the amount of CAD$300,000 with CAB. (See Note 8a). 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 quarter ended, July 31, 2011, the Company accrued and paid interest expenses of CAD $33,206 (2010: CAD$37,958)
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(c)
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On October 27, 2008 the Company made a secured loan agreement in the amount of CAD$400,000 with Christopher Bunka. (See Note 8a). On October 21, 2010, the Company settled a portion of the debt, namely US$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 quarter ended, July 31, 2011, the Company accrued and paid interest expenses of CAD $53,708 (2010: CAD$59,892).
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(d)
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See Note 5, 6, 7 and 8.
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(e)
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On April 1, 2010, the Company made a non-secured loan agreement in the amount of US$75,000 with CAB (See Note 7). For the quarter ended July 31, 2011, the Company accrued and paid interest expenses of $10,125 (2010: $4,500).
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(f)
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On September 13, 2010, the Company made a demand loan agreement in the amount of US$90,000 with CAB (See Note 8b). The interest paid interest of 3,884. On January 31, 2011, the Company paid back the loan in full.
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(g)
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Included in accounts payable, $53,200 (October 31, 2010: $90,027) was payable to a company controlled by the president and a director of the Company.
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(h)
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For the quarter ended July 31, 2011, the Company has paid/accrued $83,900 (2010: $Nil) to 0743608 BC Ltd., $35,268 (2010:$Nil) to Emerald Atlantic LLC, and $9,941 to Tom Ihrkr (2010: $Nil) for Non-consent Interest 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.
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