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9.
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Related Party Transactions
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(a) |
For the nine months ended July 31, 2013, the Company paid / accrued $72,000
to CAB (2012: $72,000); to Tom Ihrke, the VP of business development, $90
(2012: $7,878); and to BKB Management Ltd. (“BKB”) CAD$49,500
(2012: CAD$49,500) 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 nine months ended July 31, 2013, the Company paid interest expenses of CAD $20,500
(2012: CAD$20,500).
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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 nine months ended July 31, 2013, the Company paid interest expenses of CAD $53,707
(2012: CAD$53,707).
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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 nine months ended July 31, 2013, the Company paid interest expenses of $10,125
(2012: $10,125).
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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 nine months ended July 31, 2013, the Company incurred interest expenses of $4,500
(2012: $2,000).
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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 nine months ended July 31, 2013, the Company incurred interest expenses of $3,024
(2012: $nil) and paid back principal of $37,500
(2012: $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, g). This loan agreement was amended for another year to repay the debt in twelve equal monthly principal payment, plus interest on the monthly declining balances. The interest rates of the amendment debt are the same as the existing debt agreement. For the year six months ended July 31, 2013, the Company paid/accrued interest expense of $22,667
(2012: $10,000).
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(h) |
Included in accounts payable, $72,941
(October 31, 2012: $55,011) was payable to companies controlled by the president, key management personnel and directors of the Company.
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(i) |
For the nine month ended July 31, 2013, the Company has paid/accrued $35,552
(2012: $33,119) to Kelowna Resources Group formerly known as 0743608 BC Ltd.; $12,692
(2012:$22,777) to Emerald Atlantic LLC; and, $4,213
to Tom Ihrke (2012: $3,475) 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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